Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Historically, higher rates of return have been associated with higher degrees of risk.
If the IRA holder turns 70½ this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.
Do not include income from your own retirement savings, such as IRAs or employer-sponsored savings plans, but remember to include any pension benefits you may have earned in a previous job. If you are unsure how much you may receive in pension benefits from an employer plan, speak with your human resources department.
Remember to include your tax-deferred employer-sponsored retirement savings plan balances as well as any other retirement savings.
A retiree's Social Security benefit is generally based on his or her earnings history. A spouse with little or no outside earnings is generally entitled to one-half the primary wage earner's benefit rate. You can find an estimate of your projected benefits at www.ssa.gov/myaccount/. You can also call the Social Security Administration at 1-800-772-1213.
Estimated Benefits at Full Retirement Age
Final Year's Income
Potential Monthly Benefit
Potential Annual Benefit
Source: Social Security Administration.
Many people plan to retire at or around their age at which they will receive full Social Security benefits (age 65-67, depending on the year you were born). The earlier you plan to retire, the more savings you will need at retirement and the less time you will have to accumulate it. So delaying retirement for even a year or two can affect your financial picture significantly.
Keep in mind that retirements are growing longer. The average life expectancy of a 65-year-old is 18 years, and there is a 50% likelihood that one of a couple retiring at age 65 will survive to age 92.