Retirement planning: 6 things to get right
Retirement planning is usually discussed in terms of investing. Just as important is protecting the plan: making sure income keeps coming in, and that one bad event does not undo years of saving. These six basics look at retirement from that angle.
1. Know where your retirement income will come from
List every source: Social Security, any pension, workplace savings plans such as a 401(k) or the federal TSP, personal savings, and any part-time work. Knowing which sources are guaranteed for life and which can run out is the starting point for everything else.
2. Plan for a long retirement
Retirement can last decades. The risk is not only a market downturn but simply living longer than your savings. Sources that pay for life, such as Social Security, pensions and lifetime income annuities, help cover essential bills however long you live.
3. Budget for health costs
Health care costs tend to rise with age, and some costs, such as long-term care, are not covered by standard health insurance. Decide how you would pay for extended care, whether from savings, insurance or family help, before you need it.
4. Protect the plan while you are still building it
Before retirement, the biggest threats to your plan are an illness or injury that stops your paycheck, or a death that leaves your family without your income. Disability insurance, life insurance and critical illness coverage protect the savings you are building from having to cover those events.
5. If you consider an annuity, read the contract closely
An annuity can turn savings into guaranteed income. The National Association of Insurance Commissioners (NAIC) points out two things to check:
- Surrender charges. Taking money out before the date set in the contract can trigger surrender charges and other fees.
- The free look period. Many states give you a set number of days after you buy to review the contract and cancel for a refund. Use it.
Ask whether the annuity is tax-deferred, and how the interest rate or index crediting works.
6. Keep beneficiaries and coverage up to date
Retirement accounts, pensions and life insurance each have their own beneficiary forms, which generally take priority over your will. Review them after a marriage, divorce, birth or death. The NAIC also suggests reviewing life insurance every few years as your income and needs change.
Where to start
A one-page list of your income sources, your essential monthly bills and the insurance you already have shows the gaps quickly.
Sources
- NAIC, What you should know before buying an annuity, checked October 7, 2026
- NAIC, Life Insurance Buyer's Guide, checked October 7, 2026