What Is Retirement Planning?
Retirement planning is about more than just saving money. It’s a long-term strategy with a goal of helping you:
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Maintain your desired lifestyle without working full time
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Maximize income from savings, investments, and Social Security
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Manage risks like taxes, inflation, and longevity
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Make informed decisions about when to retire and how to spend
Everyone’s path is different. Your goals, health, income sources, and personal values all play a role.
Retirement Planning Checklist
Before diving into details, here’s a high-level checklist to help you get started:
☐ Estimate how much you’ll need
☐ Choose your retirement accounts (401(k), IRA, Roth IRA, etc.)
☐ Understand your Social Security benefits and ideal claiming age
☐ Create a tax-efficient withdrawal strategy
☐ Review insurance and healthcare costs in retirement
☐ Decide when you want to retire—and how you’ll spend your time
☐ Update your estate plan and beneficiary designations
Don’t worry if you can’t check every box right now. This guide will walk you through each.
How Much Do You Need to Retire?
There’s no universal “magic number,” but a good starting point is calculating 70–80% of your pre-retirement income as a goal for annual retirement income.
You’ll need to consider:
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Your ideal retirement lifestyle
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Projected expenses (including healthcare)
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Inflation and market returns
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How long you expect to live
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Whether you’ll still earn income in retirement
Where Will Your Retirement Income Come From?
Most people rely on a mix of income sources:
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Personal savings (401(k), IRA, Roth IRA, brokerage accounts)
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Social Security
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Pensions (if available)
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Real estate or business income
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Annuities or other guaranteed income* products
Choosing the right type of account (and how much to save in each) depends on your current situation.
*Guarantee is backed by the claims paying ability of the insurer.
When Should You Claim Social Security?
You can claim benefits as early as age 62 or as late as 70. The longer you wait, the higher your monthly benefit — but that’s not always the right move.
Consider these factors before deciding when to start:
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Health: Longer life expectancy may make waiting worthwhile.
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Marital status: Coordinate with a spouse to maximize benefits.
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Other income: Savings or work may let you delay claiming.
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Financial needs: If you need income now, early claiming can help.
Don’t Forget About Taxes
Many people are surprised to learn that retirement withdrawals can trigger significant taxes - especially from traditional 401(k)s and IRAs.
Smart tax planning can help you:
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Reduce required minimum distributions (RMDs): Manage when and how much you withdraw to minimize taxable income.
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Control your tax bracket in retirement: Strategically time withdrawals to stay in a lower bracket.
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Avoid unnecessary taxes on Social Security: Coordinate income sources to prevent benefit taxation.
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Potentially maximize Roth conversions and charitable giving: Use tax-efficient strategies to keep more of your money working for you.
Turning Savings Into Income
Once you retire, you’ll need a plan for turning savings into income. This includes:
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Setting a safe withdrawal rate (often 4% per year as a baseline)
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Balancing investments for growth and stability
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Factoring in healthcare, long-term care, and unexpected costs
Avoiding running out of money too early
Planning as a Self-Employed Professional?
If you don’t have a traditional employer plan, you still have powerful options:
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SEP IRA: Easy to set up and allows high annual contributions.
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Solo 401(k): Appropriate for those with no employees; offers both employee and employer contributions.
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Defined benefit plan: Most suitable for high earners who want to save aggressively before retirement.
Disclaimer: Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.