Retirement Income Control Panel

Increasing Your Paycheck Contribution

The sooner you start to save and invest, the sooner your money can start working for you. Increasing your paycheck contribution has the potential to make a big difference. See examples of different pay period contributions and their affect on total savings. Learn More...

Modifying your asset allocation

Asset allocation is the process of dividing your investment into the three basic asset classes—stocks, bonds and cash equivalents. By investing in a mix of the asset classes, you can help balance the risk and return of your investment.

Depending on various factors unique to you, including risk tolerance, time left until retirement, and personal retirement savings goals, your asset allocation can range from conservative to aggressive. With a more aggressive allocation you have the potential for higher returns, but also a higher risk of loss. If your projected retirement income is less than you desire, you may consider adjusting your asset allocation to increase your probability to achieve your desired income.

Your retirement plan may offer investment options that package asset allocation strategies in a single investment option, such as a target date or target risk fund. For more information on your retirement plan’s investment options, return to the home page and select the Investment Options menu.

If your retirement plan provides Advisory Services, you may receive personalized asset allocation advice by enrolling in the Online Investment Advice or Managed Account services. For more information, return to the Advisory Services menu on the home page.

Remember to review your investment strategy annually to ensure it is still appropriate for your retirement goals, and if necessary, rebalance your asset allocation. A Rebalance My Investments tool is available on the Transactions menu on the home page. Learn More...

Using other Sources of Retirement Income

Financial planners used to describe the three most common sources of retirement income as Social Security, employee pensions, and your personal savings and investments.

Social Security

Social Security benefits are not intended as a sole source of retirement income. For most people, Social Security will only replace a fraction of their working pay. Here's an example:

Source: Social Security Administration (www.socialsecurity.gov/OACT/quickcalc/index.html), January 2010. FOR ILLUSTRATIVE PURPOSES ONLY. This assumption is based on current age of 35 and retirement at age 67. This example assumes no future increases in prices or earnings.

You can see that the higher the annual income, the lower the percentage of that income that Social Security benefits will replace. Clearly, Social Security will not replace everything you currently make at any of these incomes. Therefore, you may need additional sources of income to fully replace your current take home pay.

Pension Plan or Employer-Sponsored Retirement Plan

In recent years, many employers have been freezing or discontinuing pension plans and instead started offering employer-sponsored retirement plans where workers defer a portion of their own paycheck into their retirement account. If you do not have a Pension, or you have a small Pension, it is important to compensate for this source of retirement income by contributing to your retirement plan or other savings and investment accounts.

If you have money in a prior employer's retirement plan, you may consider rolling it into your current plan if your plan accepts eligible rollover assets1. With your retirement assets in one place, you can simplify retirement planning and save time with fewer accounts to manage. Contact your plan representative for help, or get started on your own by filling out an incoming transfer/rollover form located on your plan's website2.

1 You are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options. 
2 Rollovers are subject to your plan's provisions. Please note that sufficient information in good order is required to complete rollover requests.

Other Savings and Investments

Besides making contributions to your employer-sponsored retirement plan, you can also save for retirement in Individual Retirement Accounts (IRAs) and in tax-advantaged investments. The two most popular types of IRAs are traditional and Roth IRAs.

Traditional IRAs permit you to make contributions that may be tax deductible and grow tax deferred (meaning you only pay taxes when you withdraw the money from the account).

Roth IRAs are a bit different in that all contributions are made with money that has already been taxed, but withdrawals you make from the account in retirement are exempt from taxes if you meet certain conditions.

Another option for additional retirement savings may be a tax-advantaged investment. Such investments include tax-free bonds, mutual funds devoted to minimizing taxes and tax-deferred annuities.

Another source of income is your personal savings, investments, certificates of deposit (CDs), or any stocks, bonds or mutual funds you may have.

Getting Expert Advice

If offered by your retirement plan, you may elect to enroll in an Advisory Services program that is right for you. Advisory Services provide Online Investment Guidance, Online Investment Advice, and Managed Account services to retirement plan participants. These services provide independent investment expert advice based upon your unique retirement goals. Advisory Services provides advice during the years that you are saving for retirement and also provides advice during the retirement years when you are receiving income from your retirement account. For more information and to enroll in Advisory Services, return to the Advisory Services menu on the home page.