Once you decide to retire and begin preparing, the final months leading up to your retirement date go by quickly. Previously, we discussed the steps to take when you’re 12 months away from retirement. As we continue our Countdown to Retirement series, let’s take a look at what you should be doing eight months out.
Eight Months Out: Review Retirement Income
Some experts say that you need 80 percent of your pre-retirement income to maintain your standard of living once you stop working. There’s a good chance that your NYSLRS pension alone won’t provide that level of income. With retirement lasting 20 years, 25 years or even longer, it’s important to have a plan in place for the extra income you’ll need.
That’s why, at least eight months before your planned retirement date, you should start reviewing any other income you’ll have available. Some common sources include:
- Your Social Security benefit (see the Social Security Administration’s website to review your online statement through my Social Security or use their Retirement Estimator tool);
- Proceeds from a 457(b) (see the New York State Deferred Compensation Plan), 401(k) or 403(b) retirement plan;
- Personal savings;
- Distributions from an individual retirement account (IRA)
- Dividends from investments (stocks, mutual funds, etc.);
- A life insurance benefit;
- Real estate (proceeds from a sale or regular payments from a rental property); or
- Earnings from post-retirement employment.
Check out our Straight Talk About Financial Planning for Your Retirement publication for monthly income and expense worksheets to help you assess your retirement finances.
Your planned retirement date is less than a year away. As the day gets closer, check out the rest of our Countdown to Retirement series for posts covering your retirement budget, what we accept as proof of your date of birth, what to do after you’ve filed your Application for Service Retirement (RS6037) and more.