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Long-Term Planning for Retirement
The more time you have before you begin your retirement, the more opportunities you have to accumulate and save money to reach your goal.

If you are or have been a member of the armed services, you should become familiar with the pension and other benefits for which you may be eligible. You also need to understand the length of service and requirements that must be met in order to qualify for benefits. You'll find more information at the Department of Veterans Affairs.

There are also a variety of non-military options for your retirement goals. If you can accumulate funds for retirement on tax free or tax deferred basis you may benefit by delaying or never paying taxes on your earnings and gains on investments.

In addition to planning for a stream of income during your retirement years, you also need to consider provisions for health and long-term care coverage.

Some more detailed information on retirement can be found on this Web site.

Figure out how much money you'll need for retirement with the Retirement Planner.

Retiring Soon?
If you are planning to retire with a year or so, you'll want to investigate the pension and health benefits for which you may be eligible—both military and civilian. To ensure that benefits are available when your paychecks and medical insurance cease and so that you have no gaps in coverage, you must determine what paperwork and applications are required and when they must be submitted.

If you are or have been a member of the armed services, you need to understand the length of service and requirements that must be met in order to qualify for benefits. Visit your personnel office or the Department of Veterans Affairs for more information.

It is very important to prepare yourself for the financial reality of your post-retirement years. Then following steps should be taken as far in advance of your expected separation date as possible.

• Be sure to include any additional medical insurance costs. This may be one of your largest fixed expenses until you become eligible for Medicare.



• Consider getting long-term care insurance. It will help you cover home care or assisted living care if you can no longer live independently.



• Generally, your work-related expenses such as clothing and lunches will decrease.



• Many people travel more and engage in additional leisure activities after retirement. Be sure to plan for these costs.



• Total your expenses.

• Calculate your monthly Social Security benefits at http://www.ssa.gov/.



• Obtain an estimate of your monthly pension benefits from your personnel office.



• Estimate the amount of monthly interest and dividends from your investments.



• Determine the monthly amount of annuity income you may receive from sources such as the Thrift Savings Plan (for Uniformed Services), 401-Ks, Individual Retirement Accounts (see also Publication 590), Variable Universal Life Insurance policies, etc.



• Total your income.

• If your income exceeds your expenses, Congratulations! You are ready to retire.



• If your expenses exceed your income, you have some decisions to make. Your options include the following:



• Withdrawing from or annuitizing the principal in your savings and investments.



• Part-time employment during retirement.



• Starting a second career or business venture. (But remember that these choices involve relatively high risk).



• Postponing your retirement.

Keep in mind that inflation may have a significant effect on your budget over the course of a lengthy retirement.

Use the Retirement Planner to see if you are on track with your retirement plan.

To see the monthly income your retirement savings may provide go to the Retirement Income Planner.