Personalized Retirement Planning

The amount you need to save depends on multiple factors including your desired retirement lifestyle, expected longevity, anticipated healthcare costs, and other sources of retirement income such as Social Security. A common rule of thumb suggests saving 10-15% of your income throughout your working years, with a target of accumulating 8-10 times your final annual salary by retirement age. However, for a more accurate assessment tailored to your situation, use our retirement calculator or schedule a consultation with our advisors.

You can begin claiming Social Security benefits as early as age 62, but your benefit amount increases for each year you delay claiming up until age 70. The optimal claiming age depends on factors like your health, financial needs, marital status, and other retirement income sources. If you claim at your full retirement age (typically 66-67 for current retirees), you'll receive 100% of your earned benefit. Claiming earlier reduces your benefit (up to 30% less at age 62), while delaying increases it (up to 24-32% more at age 70). Our retirement specialists can help analyze your specific situation to determine the most advantageous claiming strategy.

As you near retirement, your investment strategy typically should become more conservative to protect your accumulated wealth from market volatility. This often involves gradually shifting a portion of your portfolio from growth-oriented investments to more stable income-producing assets. However, since retirements can last 20-30 years or more, maintaining some growth investments remains important to help your portfolio keep pace with inflation. The specific allocation depends on your risk tolerance, time horizon, and income needs. Our advisors can help you create a personalized strategy that balances growth potential with appropriate protection.

Retirement income is often subject to different tax treatment depending on its source. Social Security benefits may be partially taxable based on your overall income. Withdrawals from traditional IRAs and 401(k)s are typically taxed as ordinary income, while qualified Roth account withdrawals are generally tax-free. Pension income is usually taxable. Additionally, Required Minimum Distributions (RMDs) from most retirement accounts must begin at age 72, with penalties for non-compliance. Strategic planning around which accounts to draw from and when can significantly impact your tax liability in retirement. Our tax specialists can help you develop a tax-efficient withdrawal strategy.

Healthcare can be one of the largest expenses in retirement. Medicare coverage begins at age 65, but it doesn't cover all healthcare costs. Consider budgeting for Medicare premiums (Parts B and D), supplemental insurance (Medigap), and out-of-pocket expenses. For a couple retiring at 65, estimates suggest setting aside $300,000 or more for healthcare expenses throughout retirement. Health Savings Accounts (HSAs) offer a tax-advantaged way to save specifically for healthcare costs if you're eligible. Additionally, long-term care insurance or alternative funding strategies should be considered as part of your comprehensive retirement plan.