Issue 5, 2025

Retirement income planning Will you have enough? Social Security, retirement savings, and pensions are awesome. But how will you turn them into retirement income? Will they provide enough to last your entire retirement? Without a good Retirement Income Plan, you may be just guessing and wishing. A good Retirement Income Plan has four key pillars. Creating a plan now, before you leap into retirement, can give you the confidence to know when and how you can exit. The four pillars 1. Discover what makes retirement different. When you retire, the risks change. You may live longer than expected, need more healthcare, or face rising prices. That means you need a flexible and effective plan for today, tomorrow, and your last years. 2. Estimate how much you’ll need. Retired life has phases. And each brings with it a different spending pattern. Learn how to plan financially for each phase, including your: Go-go years: When you’re actively enjoying your newfound freedom. Slow-go years: You’re enjoying life, but at a more cautious pace. No-go years: The effects of aging minimize how much you can get out.   3. Match your income to your expenses. Your retirement will have some of the same basic “must have” expenses as your work life. You may also have more time for optional expenses such as travel or hobbies. How will you use guaranteed income sources – like Social Security and pensions – as well as retirement savings to pay for these expenses? Will you have a gap between your guaranteed income and basic expenses? Or, between your savings and paying for things you’d love, like a cruise? 4. Turn your resources into paychecks. You’ll need to consider strategies – such as a Systematic Withdrawal Plan (SWiP) – for tapping your retirement savings while addressing market changes and required withdrawals. What about other resources? Will you need to tap into the value of your home for income? Will you need to turn some of your savings into guaranteed income? Get started Explore our free on-demand workshop (login required), Managing Your Retirement Income, anytime. (login required) Whether retirement is soon or far away, now’s a great time to plan ahead.

Build an emergency fund Small steps that make a difference Whether big or small, emergencies can pile a lot of emotional stress into our lives. Often, that’s because crises affect those we love and our ability to care for them. When your car’s transmission goes out, you may struggle to get to work, get children to school, or loved ones to a doctor’s appointment. That’s the first wave of anxiety. The second comes with the cost of a repair. An emergency fund is about more than building cash. It can lower your anxiety, allowing you to focus at work and care for those you love rather than scrambling for a loan. How big a fund do you need? Many financial counselors suggest an emergency fund should be at least three to six months of living expenses. That’s the type of money that can keep you afloat if you find yourself unemployed and looking for a new job. Building an emergency fund takes time. So start with a small goal—maybe $500 or $1000—and continue to take small steps forward. How do you begin an emergency fund? Get started by reviewing the lesson in My Penny Earned’s Budgeting & Financial Goals course (Login required).

Emergencies can shake your confidence — and your finances.
How are you doing with emergency savings? Take the survey.

Survey Says: How often do you check your plan? Here’s what your fellow readers had to say … Last month, we asked how often you log in to your Deferred Compensation Plan account to review your information and investments. In our informal survey, most participants said they check in two to four times a year. Survey Responses • Quarterly – 40% • Every 6 months – 40% • Annually – 20%