Retirees 12 Months Out Need 5 Moves, Including 4% Withdrawal Plan
Updated
Updated · USA TODAY · Aug 2
Retirees 12 Months Out Need 5 Moves, Including 4% Withdrawal Plan
3 articles · Updated · USA TODAY · Aug 2
Summary
Five steps top the checklist for workers one year from retirement: set a realistic budget, choose a Social Security claiming age, rebalance investments, maximize final earnings and map withdrawals.
Social Security can start at 62, while people born in 1960 or later reach full retirement age at 67 and can raise monthly benefits by waiting until 70.
Portfolio changes are central because savings are shifting from growth to income—experts recommend more bonds for stability and a few years of living expenses in cash.
Final paychecks can still strengthen retirement, but extra savings may fit better in a bank or taxable brokerage account if large 401(k) or IRA balances could later trigger hefty required minimum distributions.
Withdrawal planning ties the year together: a 4% rule may suit balanced portfolios, while more conservative allocations may call for something closer to 3%.