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Make Your 401(k) Last In Retirement
Posted By Carole Fleck On April 17, 2012 @ 11:23 am In Money Talk | Comments Disabled
If you’re worried about outliving your retirement savings , consider this: Don’t withdraw more than 6 percent annually  from your employer-sponsored 401(k) or 403(b) plan . Take more than that and you could be tempting fate. That’s the harsh conclusion from the Institutional Retirement Income Council, a nonprofit think tank that looked at several strategies for new retirees.
Determining how much retirees should withdraw from their retirement plans has been a favorite subject of debate among retirement planners. The council’s 6 percent figure is at least more palatable than the frugal 4 percent withdrawal rate that’s often recommended to keep retirees from going broke.
â— Using all or part of the lump sum retirement savings to purchase an annuity.
â— Purchasing a guaranteed minimum withdrawal benefit, which allows a retiree to maintain some control of the retirement funds but also provides a guaranteed benefit.
Photo via Rambergmedia.com  via Flickr Creative Commons
Article printed from AARP: http://blog.aarp.org
URL to article: http://blog.aarp.org/2012/04/17/make-your-401k-last-in-retirement/
URLs in this post:
 Image: http://aarpblog.files.wordpress.com/2012/04/outlive-retirement-savings1.jpg
 outliving your retirement savings: http:///www.aarp.org/work/retirement-planning/info-06-2010/running_out_of_money_worse_than_death.html
 Don’t withdraw more than 6 percent annually: http://www.aarp.org/work/retirement-planning/required_minimuum_distribution_calculator/
 403(b) plan: http://www.aarp.org/work/retirement-planning/403b_savings_calculator/
 Determining how much retirees should withdraw : http://www.aarp.org/work/retirement-planning/retirement_calculator/
 recent survey: http://www.prnewswire.com/news-releases/americans-in-the-dark-about-the-real-cost-of-retirement-131508253.html
 His brief examines: http://iricouncil.org/thought
 Rambergmedia.com: http://rambergmedia.com/
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