Managing your money in retirement

For years, you've been focused on saving and investing for retirement. Now you have a new financial goal—making your money last a lifetime.

Here are some important topics that can help you make your money last.

At Fidelity, we believe your retirement investment plan should include these building blocks.

 

Guaranteed income

Have enough guaranteed income to pay for your day-to-day expenses.

Growth

Include investments that have long-term growth potential to help keep up with inflation.

Flexibility

Be flexible enough that you can modify your plan as your needs change over time.

Take action

Review how your asset allocation affects your portfolio over the long term and see how guaranteed income could fit into your plan.

Planning & Guidance Center

We can help you to understand potential health care costs in retirement and how they could impact your plan.

 

healthcare-1_icon Budgeting for health care
It's important to budget for health care costs. You can start by assuming that you'll spend 15% of your monthly budget on health care, but that figure will vary from person to person.

Learn more: Paying for health care and strategies to reduce costs
healthcare-2_icon Planning for long-term care
In addition to planning for medical expenses, you should also plan for long-term care. Long-term care may take place in your home, in an assisted living facility, or in a nursing home.

Learn more: Long-term care: Options and considerations
healthcare-3_icon Reducing medical costs
Making informed decisions on how to cover, and perhaps reduce, potential medical and long-term care costs can help your savings last longer.

Learn more: How to talk to your doctor—and save money

Understand tax rules for different account types and approaches to help enhance tax efficiency.

 

healthcare-1_icon Tax rules
Knowing the tax rules for each type of retirement account can help you avoid surprises when you begin withdrawing from them. Learn more about tax rules.

1    Traditional IRA or 401(k): Withdrawals are taxed at the same rate as your other income.

2    Roth IRA or Roth 401(k): Withdrawals are generally tax-free, as long as certain requirements are followed.

3    Taxable brokerage account: Earnings from these accounts, including dividends, interest, and realized gains on investments, are generally taxed in the year they are generated. Withdrawing money from your account does not result in tax implications. However, selling investments to enable a withdrawal may result in tax implications such as capital gains tax.
taxes-2_icon Tax-sensitive withdrawal approaches
When your savings are spread across a variety of types of accounts, such as traditional and Roth retirement accounts, and taxable accounts like brokerage or savings accounts, choosing which one to withdraw from and when can be complicated when you are trying to manage your tax bill.

Learn about 2 approaches to deciding which accounts to draw from when: Tax-savvy withdrawals in retirement

Get the most our of your retirement savings with tax-efficient withdrawals.

 

withdrawals-1_icon
Using your savings

How to ensure you don't spend too much

withdrawals-2_icon
Knowing the rules

Rules differ by the account and when you take them

Withdrawals-3_icon
Taking withdrawals

Taking withdrawals from your Fidelity accounts

Being aware of these 5 key factors can help ensure success while managing your money in retirement.


1_iconBalancing asset allocation
Align your mix of stocks, bonds, and cash with your goals, age, and tolerance for risk.
2_iconPlanning for longevity
Recognize how long you might live and how long you'll need your money to last.
3_iconKeeping up with inflation
Consider stocks and other growth-producing assets to help keep pace with rising prices.
4_iconManaging withdrawals
Know how much you can take from your savings without risking running out of money.
5_iconPlanning for health care
Understand medical and long-term care expenses, including those you don't expect.

Learn more: 5 ways to help protect your retirement income

Let our advisors help you

We can help you understand taxes, decide when to claim your Social Security benefits, and generate income from your investments.

Connect with an advisor

Additional resources

Required minimum distributions (RMDs)

Learn what RMDs are, what they mean for you, and how to withdraw from your savings.

Estate planning

Use our free online service that guides you through the estate planning process.

Social Security

Use our calculator to help you determine when to begin taking Social Security benefits.

We're here to help