Financial Planning after Retirement

Whether you are about to retire or have already done so, the need for financial planning remains critical. If you retire in your mid-60s, you can reasonably expect to live another 25 years. The challenge is to stretch your assets over a time period that may be half as long as your entire working career.

Preparing a plan to help avoid the five key risks to your retirement income can help your money last throughout your retirement.

Overspending
Obviously the amount you spend has an enormous effect on whether your money will last throughout your retirement. A slightly higher rate of withdrawal can significantly decrease your years of retirement income. As a hypothetical example, a portfolio of $1 million with a 4% annual withdrawal rate could provide 6 more years of retirement income than a 5% withdrawal rate.

Source: Fidelity Investments