Replacing your salary in retirement

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Soon enough, it will be time to transition to retirement.

Now is a good time to start planning how you'll replace your paycheck when you stop working.

First, think about the expenses you'll need to cover every month like clockwork – things like housing, your car, and groceries.

Then, look ahead to the extras you'd like to enjoy. Maybe you want to travel, get a second home or give to family or charities.

Next, make a plan to pay yourself with retirement income to last throughout your life.

You'll have to account for certain risks we'll all encounter. A diversified income strategy may be able to help – one that provides income from a variety of sources. Let's look at how that can work:

Social Security and pensions both provide steady income.

And if you're concerned about running out of money, consider annuities that offer lifetime income.

A fixed annuity is not impacted by the stock market and guarantees steady income.

A variable annuity provides lifetime income payments that vary – going up or down with the markets. Variable income has the potential to grow to help offset inflation and keep up with rising costs.

You can take withdrawals from mutual funds and other investments you may have. They add liquidity to your portfolio and the potential for growth. Just be aware that if markets decline early in your retirement or you live a long time, this money could run out.

To figure out how to address your needs, it's a good idea to align your income sources with your expenses.

For instance, you can cover daily necessities with steady income from Social Security, a pension if you have one, and guaranteed income from a fixed annuity like TIAA Traditional.

Extras like entertainment and travel, plus rising costs like healthcare, could be covered with lifetime income from a variable annuity,such as the CREF Annuity Accounts, and withdrawals from investments that move with the markets and may help your income grow.

Your income plan helps set your direction for retirement just as much as your savings plan. Having annuities in the mix may give you income you can rely on throughout retirement.

And remember, you don't have to go it alone. Visit us online, or talk to a TIAA financial consultant to help you create an income plan.

Get ready to replace your salary with income for life.