Retirement Planning – Nearing Retirement

Age 45-65: During this stage, evaluate your plan to make sure you are still on track…

1. Boost your overall Retirement Savings
2. Explore your Rollover Scenarios
3. Protect Against the Unexpected
4. Establish your Legacy
5. Decide when you can retire

Boost your overall Retirement Savings

• Fully fund your employer’s retirement plan and your IRAs. If you are age 50 or older, take advantage of the “catch-up” contribution.
• Consider increasing the amount that you are saving from your income.
• Consider the risk of your portfolio. Seek a combination of investments that are perhaps more conservative since you have a shorter timeframe to compensate for the inevitable ups and downs of the market.
• Start thinking about increasing liquidity.

Just started saving? Develop a plan that works for you.

Explore your Rollover Scenarios

Rolling over distributions from your 401(k) and other employer sponsored plans to consolidate your assets might be another option. Use this chart (PDF 32 KB) to make your decision. Learn more about rollovers &  transfers.

Protect Against the Unexpected

Concerned about the high cost of medical services and long-term care arrangements? Long-term care insurance can be the answer.

Establish your Legacy

Rest easier knowing your loved ones may be better provided for down the road, especially when you’re no longer here to help.

• Life insurance can be an easy decision.
• Make sure your will is up to date.
• Start thinking about making provisions to pass along assets to your heirs or favorite charity.

Decide when you can Retire

Re-examine your goals:

• Where do I want to live?
• Will my mortgage be paid for?
• Do I want to travel?
• Do I work part-time?

As a general rule of thumb, target a retirement income of roughly 70% to 80% of the amount you are living on in the months before you retire. Calculate your retirement to see if you are on track.

Americans are living longer so demands on your resources are greater than ever before. Consider leaving a portion of your investments with a tolerance for risk that is adjusted for a longer timeline. You might also want to look at financial options which enable you to receive income that may be guaranteed for your lifetime.

Learn more about Social Security.

Note: Ideas listed above are only suggestions. See a State Farm agent for help with your personalized retirement plan.