Retirement Planning

Retirement planning is the process of determining a retirement income and/or savings goal, identifying the sources of retirement income and determining whether or not your resources will meet your goal.

Sources of retirement income include:

• military retired pay
• TSP
• state and federal government pensions
• Social Security
• private sector pension plans
• IRAs (individual retirement accounts)
• annuities
• 401(k), 403(b) and 457(k) plans (private sector retirement plans, similar to the TSP)
• brokerage accounts
• personal savings
• Accumulated home equity

Even if you plan to make the military a career, don't assume that you military retired pay and Social Secuirty will be enough to meet your needs. Further, most people don't start seriously planning their retirement until their mid-to-late 40s; this is a mistake. Saving $250 a month at age 25 will yield approximately $872,000 at age 65 with an 8 percent return. Waiting until age 45 to start saving yields only $147,000 at age 65 - a $725,000 difference!

How much will you need at retirement? Try our Retirement Savings and Planning Calculators to get an idea.

Finally, a certified financial planner can be invaluable in figuring out how to fund your retirement needs and MOAA's sponsored financial planning service the Garrett Planning Network (GPN) can assist you in structuring a customized retirement plan. To find a GPN planner near you, visit the GPN website or call (866) 260-8400 and don't forget to ask for the 20% MOAA discount.