Retire Well
Mapping out your retirement - from estimating your needs to planning your income - means giving yourself greater possibilities and freedom to enjoy your future.
Will I be ready to retire?
Consider 5 factors that may contribute to your retirement readiness: lifestyle, family, job, health, and financial. Find out how ready you are and what to do next.

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Preparing for retirement? Start with these three key areas
Ahhhh, retirement: It's what you've worked, saved, and planned for all these years. Now that it's approaching, have you thought through all the steps you need to take to transition into retirement? Here are three major planning areas to consider:
- Turning savings into income. To start your next chapter in life with comfort and confidence, you'll need to create a plan to turn the money you've saved into a steady stream of income.
- Timing your Social Security benefits. You're eligible at 62, but when should you start collecting Social Security? While there is no one-size-fits all answer, waiting could potentially increase your retirement income.
- Planning for health care costs. This is a biggie - and often underestimated. Our 2018 health care costs study¹ estimates that a couple retiring in 2018 at age 65 can expect to spend at least $280,000 to supplement Medicare and cover their out-of-pocket health care costs in retirement. Consider how much health care will cost you, how much Medicare will cover, and how you will bridge the gap.
Next Steps
Create a Plan
Login to the Planning & Guidance Center on NetBenefits to create a plan for your financial goals.
See Also
When and How to Claim Social Security
Learn how to make critical Social Security decisions-when to claim, what to expect, and how the process works.
How to Plan for Rising Health Care Costs
Plan ahead and make health care costs part of overall retirement planning discussions.
1 Estimate based on a hypothetical couple retiring in 2018, 65-years-old, with life expectancies that align with Society of Actuaries' RP-2014 Healthy Annuitant rates with Mortality Improvements Scale MP-2016. Actual assets needed may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes: cost basis is assumed to equal market value. Estimate is calculated as the assets required today in a taxable account with an effective tax in retirement of 5%, an asset allocation of 30% equity, 50% bonds, and 20% cash, such that there is a 90% chance of being able to pay for healthcare expenses through life expectancy. The Fidelity Retiree Health Care Costs Estimate assumes individuals do not have employer-provided retiree health care coverage, but do qualify for the federal government's insurance program, Original Medicare. The calculation takes into account cost-sharing provisions (such as deductibles and coinsurance) associated with Medicare Part A and Part B (inpatient and outpatient medical insurance). It also considers Medicare Part D (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by Original Medicare. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Meet specific needs with specific income

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Estimate expenses to know how much you'll need
Retirement is a very personal experience, built on your own specific needs and aspirations. Building a retirement plan that works for you starts with one exercise: understanding your future needs and expenses to see how much income you'll need.
To put you on the right path, start by estimating your needs in these three key areas:
- Essential expenses - Just as in your working years, you'll need income to pay for "must-haves" like food, utilities, health care and insurance, and housing.
- Emergency needs - There are rainy days even in retirement. Set aside some cash so that if an accident, emergency, or other unexpected event arises you won't have to cover the costs with credit cards alone.
- Discretionary spending - How will you spend retirement? Enjoying a favorite hobby? Traveling? Spoiling the grandkids? Since these "nice-to-have" expenses are variable, consider covering them by making as-needed withdrawals from your investment portfolio, which may include stocks, bonds, and mutual funds. In the meantime, until expenses arise, simply leave your investments to potentially grow, giving yourself a greater opportunity to build assets you'll need for 30 years or more in retirement.
Once you identify your needs, determine a personal plan for generating income (see next tab, "Generating Enough Income").
Next Steps
Estimate your needs
Login to the Planning & Guidance Center in NetBenefits to estimate how much income you may have - or need - in retirement.
See Also
How to Manage Cash Flow in Retirement
Smart ways to help make managing your finances easier, more efficient, and less expensive.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Checklist for income needs
Here are a few things to account for:

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Turn your savings into income
You've spent years saving. Come retirement, it's finally time to put that money to good use. To do so wisely, you'll want to tackle two critical tasks: turning your savings into a reliable stream of income and developing a plan to help make your money last. Here are two steps to get started in generating your retirement cash flow:
- Create a steady stream of income. To do so, find a strategy that turns your savings into guaranteed cash flow to cover your essential expenses.* One option is an annuity, which can start immediately or on a future date but you may also get income from a variety of other sources, including Social Security benefits, pension distributions, part-time employment, or the sale of assets.
- Make your money last. Focus on determining your appropriate withdrawal rate, or how much you withdraw each year from savings to cover your needs. Be mindful of the accounts you withdraw from as well. To help minimize taxes, consider withdrawing first from tax-free accounts (bank accounts and the cash portion of your brokerage accounts); the longer you leave funds untouched in your IRA or 401(k), the more chances to earn tax-deferred growth.
To make every dollar count, also be sure to factor in other important considerations, such as inflation and the cost of health care (including Medicare).
Next Steps
Income Strategy Evaluator
Let us help you find the right mix of income-producing investments to meet your retirement needs with our online tool.
See Also
Turn Your Savings into Retirement Income
Watch this webinar to learn about how to develop a retirement income plan.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Pass on the fruits of your accomplishments
That's your legacy.

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Preserve and Share What You've Grown
You've opened a world of possibilities for your retirement by saving and investing for years. Today, with your goals in sight, your efforts have also opened another opportunity: the ability to ensure the loved ones and organizations near to your heart are taken care of today and in the future. Here are three steps to take to help ensure you leave the legacy you desire:
- Determine what you'll give and to whom. To properly fulfill your personal wishes, start by listing the people, organizations, or life events you want to support - be it friends, family, charities, a college education - to ensure nothing's overlooked.
- Name your beneficiaries. Beneficiary is the legal term for someone who will inherit assets from you upon your passing. Name beneficiaries for your accounts online (if available in your plan) or by phone.
- Gift assets today. Gifting allows you - and others - to benefit from your generosity immediately. By gifting assets to family or charity, you will not only help those you care about, you may also enjoy immediate income and estate tax benefits.
Ultimately, giving to others is a very personal decision. By planning your legacy ahead of time, you may gain greater control of how your assets are passed on to those you love.
Next Steps
Add Beneficiaries Online
If available in your plan, log in to NetBenefits to name beneficiaries and ensure your assets pass on to your chosen recipients.
See Also
Estate Planning Action Center
From the basics to more advanced estate planning approaches, we'll show you how wills and trusts work as well as strategies to help protect your beneficiaries and assets.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917