 |
|
|
|
|
|
|
| Determining Your Retirement Income |
|
|
|
|
|
How much money will you have for retirement? Your retirement income may include:
Social Security. Social Security was designed after World War II – when people were expected to live only a couple of years past age 65 – to provide a survival income. It only replaces a percentage of working income. Plus, there are many questions surrounding the future of this government program. Will it even be around when you retire? When will the benefits be available to you (age 65, 67, or later)?
Refer to “Your Social Security Statement” sent to you several months before your birthday each year to find out how much you can expect at retirement, based on your earnings, and how the current system works (which is subject to change, of course). Or go to the Social Security website. From the Retirement section, click on the “Do you Qualify” link, then the “Full Retirement Age” link.
Personal savings. In addition to your Alcoa Savings Plan account, do you have any other savings targeted for retirement? This may include individual retirement accounts (IRAs) -- regular and Roth, rollover IRAs, 401(k) plan accounts with former employers, certificate of deposits (CDs), money market accounts, mutual funds, and other savings accounts.
Alcoa pension benefits. If you’re eligible for an Alcoa pension plan and want to get an estimate of what your retirement income could be in the future, use the online retirement income estimator. Select the “Pension” tab, and then click on “Project Your Retirement Income.”
The pension estimator uses certain income and eligibility assumptions. Then, the estimator calculates your projected income based on your:
- Alcoa Savings Plan account balance (if applicable). The projected amount depends on your current savings plan account balance, your annual contributions, any matching contributions, as applicable, and investment earnings.
- earned pension benefit (if applicable)
- Social Security benefit. The income you earn while working determines your Social Security retirement benefit.
Projected pension benefits. If you or your spouse are eligible for a pension plan from a former employer, you should have received a statement that projects your monthly benefit.
Part-time job. Some people are willing to work part-time after they retire from their full-time career. This is one way to make your retirement income last longer. Keep in mind that your health can play a role in whether you continue working. Also consider the type of work you would like to do and what it might pay.
|
|
|
|
|
