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Where do you see yourself in retirement?

Whatever your vision, it can help to have a sense of where you’re headed, so you can decide what it will take to get there. Planning for your retirement is an ongoing process, not a one-time event. At Wachovia, we can help you create a lifetime retirement plan, and then monitor and update the plan so it stays aligned with your retirement goals. A successful plan reflects your current situation, and is flexible enough to accommodate your changing situation.

Why plan for retirement?

As a result of technological and medical advances, people are living longer. That means you could be retired for nearly as long as you worked. How will you generate income for that period of time and how much will you need?

Industry experts predict you will need 80% of your pre-retirement income in order to live comfortably in retirement—more if you plan to travel extensively or hope to leave substantial assets to your heirs. And, you should plan on a retirement of 30 years or more. A solid retirement plan takes into account both the accumulation and the distribution phases and helps you transition when the time is right.

The Accumulation Phase

If you are more than 10 years away from retirement, your focus should still be on accumulating adequate assets. Set a savings goal and get into the habit of saving enough on a regular basis in order to reach that goal. First, establish how much you will need in retirement. If you’re many years from retirement, it can be difficult to estimate an amount, so we recommend starting with the 80% replacement figure mentioned earlier. As you get closer to retirement, you may want to anticipate actual expenses more accurately so you can refine your savings goal.

Once you know how much you will need, you can determine how much to save each month to arrive at your goal. A good estimation involves a number of factors, such as your current age, your desired retirement age, your expected longevity, the expected rate of return on your investments, how much you’ve already saved, etc. Fortunately, sophisticated retirement calculators make it easy to figure all of this out.

Start by going to Wachovia’s Quick View retirement calculator. Enter key information and then watch as the Quick View calculator shows you how much you will accumulate and how long you can expect your savings to last in retirement based on your current savings rate. By modifying your inputs, you can compare how your financial picture in retirement may change.

While in the accumulation phase, consider these strategies to help you achieve your goals:

• Consider taking advantage of tax-deferred savings opportunities, such as a 401(k) plan at work or an IRA. ^{note 1}
• If you have a plan at work, think about participating.
• If possible, you may want to contribute at least six percent.
• If your employer offers a match, contemplate contributing enough to get the full match.
• Consider opening an IRA for additional tax-deferred savings and contribute each year.
• Carefully manage debt so you can save as much as possible.
• When suitable and appropriate think about using insurance products to protect your family from unexpected events. ^{note 2}

For additional strategies tailored to a particular life stage, see our Lifetime Retirement Planning section.

The Distribution Phase

If you are five to ten years from retirement, consider creating a plan for how you will generate a reliable income stream from your accumulated assets and other sources. At this point, you will need to be very detailed about the expenses you will need to cover and how and when you will withdraw money from the various sources of income, such as Social Security, a pension plan if you have one, and any other sources of retirement savings. For valuable tips on how to begin planning for retirement income, take a look at our Plan for Retirement Income page.

What’s your next step?

Retirement planning is an ongoing process. It takes time. It takes patience. It takes strategy. Wachovia is committed to working with you every step of the way. To get started, call us at (866) 588-9606, 8:00am to 8:00pm, Monday through Friday ET. Or find a Financial Advisor near you.