Key Elements of Retirement Explained

Key Elements of Retirement Explained

You worked 40 years, and finally, you’re getting ready for retirement. Unfortunately, many retirees are downright confused about the key elements of retirement, such as what their retirement benefits are and how they work. That lack of insight can lead to poor decisions.

As an example, some people are confused about the difference between a pension and a retirement savings account, such as a 401(k) or 403(b). One of my clients, who had a 403(b) plan, thought her pension and her 403(b) were the same thing. After I explained they are two separate items, she did some checking and discovered she had almost $1.5 million in assets she had been unaware of. She thought she needed to work another year or two before retirement, but, of course, that discovery changed her timeline.

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