Live for today.
Plan for tomorrow.

Budgeting for Retirement

When you retire your cost of living will change. Some expenses will increase and some will decrease. Your lifestyle and health will play a role in how you choose to spend your money. Assessing your living costs and understanding your income are essential when making a decision on what form of annuity to select.

Planning Tip: Your expenses can be categorized into 4 types, and matched to the following income sources.

Essential

This includes those expenses that require sufficient income to cover such as:

  • Food
  • Housing
  • Utilities
  • Debt

Important

This will cover expenses which, though not essential, most of us would consider critical such as:

  • Insurance
  • Clothing
  • Healthcare
  • Car maintenance

Discretionary

Discretionary expenses might include:

  • Vacations
  • Entertainment
  • Club memberships
  • Hobbies and interests

Occasional Major

Cover for unforeseen or major expenses:

  • Long term care
  • Major repairs to the home
  • New car or new home appliances

Next, match your expenses to the following income sources:

Guaranteed

It is critical that your essential expenses are covered so make sure you have enough guaranteed income:

  • Company or occupational annuity
  • Social Security

Reliable

Reliable sources of income should be used to cover important expenses:

  • Cash
  • Savings
  • Income from ongoing employment

Variable

Examples of variable income could include:

  • Stocks
  • Bonds
  • Rental Income

One-Off Sources

These could include:

  • Reverse Mortgages
  • Inheritance

Once you have matched your expenses to your income, read over the different annuity types to figure out which will be the best fit for your situation/lifestyle. If you need to discuss your options more thoroughly, please contact your tax advisor or financial planner.

How you can access your deferred pension?

Approximately five months before your normal retirement date, we will reach out to you to begin the retirement process.

If you want to access your deferred pension in advance of your normal retirement date, please call Call: 1-800-664-6129. Once you contact us, we will arrange to provide you information on your payment options within 10 days.

Once you've received your quotes, you may want to obtain advice from a tax advisor or financial planner.

If you want information in advance of your normal retirement date, including information regarding optional retirement dates, please contact us at Call: 1-800-664-6129.