Managing income and investments in retirement

You have a new goal—making your money last a lifetime.

You've spent years working and saving for retirement. Now you need a plan for managing your savings that meets your needs for income, growth, and flexibility. We can help you choose investments, see how much you'll need for health care and other expenses, and create a tax-sensitive withdrawal strategy to generate income in retirement. Having a plan can help give you peace of mind today—and in the future.



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

These are the key pieces of a retirement investment plan.

Guaranteed income

Your plan should provide enough reliable income to pay for your day-to-day expenses.

Growth

It should include investments that have long-term growth potential to help you keep up with inflation.

Flexibility

Your plan should be flexible so that you can modify it as your needs change over time.

As you retire, you may be looking for investments that can help you generate income. Fidelity offers a wide variety of income-focused investment options and we can work with you to help you create a portfolio that meets your needs.

  • Mutual funds and exchange-traded funds (ETFs) seek to generate income as well as potential for long-term growth.
  • Individual bonds, certificates of deposit (CDs), and money market funds offer the potential for regular income payments.
  • Annuities are insurance contracts that make guaranteed payments now or in the future.

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

 

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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
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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
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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 save money on prescription drugs

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

 

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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.
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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.

 

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Using your savings

How to ensure you don't spend too much

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Knowing the rules

Rules differ by the account and when you take them

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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.


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Balancing asset allocation

Align your mix of stocks, bonds, and cash with your goals, age, and tolerance for risk.
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Planning for longevity

Recognize how long you might live and how long you'll need your money to last.
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Keeping up with inflation

Consider stocks and other growth-producing assets to help keep pace with rising prices.
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Managing withdrawals

Know how much you can take from your savings without risking running out of money.
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Planning 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 generate income from your investments, decide when to claim Social Security, and help you develop a tax-sensitive withdrawal plan.

Find an advisor

Create a retirement income plan

Our Planning & Guidance Center can help you build or update your investment strategy, estimate expenses, see how much income you may have, and see how long your money may last in retirement.

Create or modify your plan

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