Planning Your Retirement

Let's work together to find the ways retirement can work for you.

You work hard to provide your family with a comfortable lifestyle. Retirement shouldn't be any different. That's why Allstate offers savings and investment options with you in mind so together we can find the best path for you to move confidently toward retirement.

Take the first step toward saving for retirement today.

You can borrow money for your child's college tuition or to buy a house, but you can't borrow money to live on in retirement. As you move through life - and life's changes - your needs and expectations of retirement change, too. Take time to evaluate where you are today and where you want to be in the future. Meet people in different stages of life who are charting their retirement course.

20-35 Age Range 36-50 Age Range 51-65 Age Range
  • Scott

    Single with full-time job

    Age: 26

    Yearly household income: $35,000

    Giving your money a place to grow After a few years of being at the same company, Scott accepted a new position at a different sales firm. He had been contributing to a 401(k) through his former employer and he wants to keep that money for its intended use - retirement. So he rolled it over into an IRA. In doing so, he avoids taxes and penalties that come with cashing out the money now, and the money can continue to grow until he's ready to retire.

    Continuing to plan Along with maxing out his 401(k) contributions at his new job, he opened a Roth IRA. This way he'll be able to put even more money away for retirement. He likes how the Roth IRA allows him to take out money tax-free during his retirement years and how it can deduct automatically from his bank account so saving is as easy as possible.

    Saving for the near future Scott loves his girlfriend, Jessica, and wants to spend the rest of his life with her. He doesn't have a lot of money to put toward an engagement ring right now, so he's researched short-term savings investments like CDs, money market accounts and mutual funds. He chooses a money market account because it involves no risk, gives him immediate, penalty-free access to his cash and still earns interest. He knows that by adding to his account as he can, he'll save enough money to buy Jessica a ring as beautiful as she is.

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  • Kristen

    Single and self-employed

    Age: 42

    Yearly household income: $42,500

    Working toward a comfortable retirement Because Kristen works for herself, she's never had an employer nudge her about contributing to a 401(k). But she knows she needs to start saving for retirement so she will have money to live on after she stops working and possibly even travel with her friends. Without a clear direction, Kristen consults her tax advisor to help create her path. Together they explore many options, including IRAs, annuities and mutual funds, to find the best combination to reach Kristen's goals.

    Preparing for the future Kristen's mother died unexpectedly a few years ago. She didn't have life insurance, and Kristen and her four sisters were left to cover funeral costs and other final expenses. It was an added surprise during an already difficult time. She doesn't want to burden her sisters in the same way, so she's selected a permanent life insurance policy. She can't predict when she'll pass away, so she likes how the policy lasts as long as she will live and will cover many final expenses so her sisters won't have to.

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  • John and Sarah

    Nearing retirement

    Age: 62, 57

    Working toward a comfortable retirement Although Sarah and John both contribute to 401(k) accounts through their employers, they are unsure about how much they will really need - and how much they will actually have - for retirement. They are reviewing their employer-sponsored accounts to monitor the risk levels and are considering new savings options like IRAs and mutual funds. With retirement now on the horizon, they know the importance of re-evaluating their financial future.

    Saving for a college education Sarah and John know the importance of a college education, how it opened doors for them - and they want their grandchildren to have the same advantages. To give the grandchildren a head start, they opened age-based 529 college savings plans for all of them on their first birthday. The process was easy because anyone can open and contribute to a plan for anyone else. The money is tax-free, and Sarah and John like being able to add to the accounts on birthdays, holidays and anytime in between.

    Protecting financial health Sarah's family has a history of breast cancer. She's seen how expensive treatment can be, so she's purchased additional cancer insurance to help protect her family's financial future. Sarah understands she can only qualify for this type of coverage before a diagnosis, so planning ahead was critical. She appreciates how it will help cover the cost of both inpatient and outpatient cancer treatments, something her current health insurance lacks, and may even provide money for transportation and groceries during her care.

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Here are some things to consider in this stage of your life.

Financial security means something different for everyone, so your path should be tailored just for you. Learn about your options, and what affects them, by understanding more about what you need and researching resources on how you can get it.

  • Learn more about annuities
  • Explore IRA options
  • Will your retirement savings go the distance?

    An IRA or employer's retirement plan, like a 401(k), is a great start toward building your retirement savings. But what if your money needs to stretch further? Rising prices can change your retirement income needs. How will you get paid if you no longer have a paycheck?

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  • Retirement living

    The never-ending rise in prices.

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  • Consider an annuity

    1. 1. An investment option that can help provide a regular source of income you cannot outlive.
    2. 2. A way to supplement other retirement savings, like Social Security or pensions.
    3. 3. Opportunity to select when and how long you receive income.
    4. 4. Tax advantages on your investment earnings.

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  • An annuity is like a paycheck for life

    You deposit the money, then set up your account to provide a monthly amount of income - much like a paycheck for the rest of your life.

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  • Will your finances be ready for retirement when you are?

    Hard work deserves to be rewarded. Whether retirement is right around the corner or decades away, your money needs to get its job done too. What growth opportunities are you giving your savings?

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  • Your lifestyle may change during retirement, but you'll still have to cover expenses. An individual retirement account (IRA) may help provide the income you need to meet your goals.

    Target Retirement Income

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  • IRA fundamentals

    1. 1. A tax-advantaged way to save for retirement.
    2. 2. You can choose the investments in your account, like mutual funds, stocks or bonds, based on your risk tolerance.
    3. 3. Restrictions on withdrawal time frames encourage use as a retirement funding plan.

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  • Start now to get ahead

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Things To Think About

Four Things to Know About Retirement
When you think of retirement, what comes to mind? Here are four things to think about as you plan for your retirement:

1. It's a great time for a fresh start. Think 65 is too old to start a new career, take up new hobbies or go back to school? Think again. After all, retirement these days may be 20 years or more. Plan to spend your time doing the things you've always wanted to, but never had time for.

2. Your employer's 401(k) plan alone might not be enough. Don't confuse your 401(k) with a pension. Your 401(k) does a lot of good by automating your savings, deferring your taxes until retirement (when you could be in a lower tax bracket) and giving your employers' the chance to match some of your contributions if they choose to. But you can only benefit from it if it's well-funded.

3. Social Security won't take care of you. Chances are good that your Social Security benefits won't be enough to cover your living expenses. To get an idea of how much your monthly benefit might be, take a look at your Personal Earnings & Benefits Estimate Statement, which the Social Security Administration mails out each year. (Your monthly benefit will change over time, so check your statement each year.)

4. Stretch your income. If you're willing to relocate to a city with a lower cost of living, your expenses could go down. Downsizing to a smaller home can add thousands to your potential income. Many retirees take on part-time jobs they love. Or how about putting your skills to use by tutoring or offering services to your community.

Five Things to Know About Social Security
1. Your payments will be bigger if you wait until your full retirement age. You can start taking Social Security payments as soon as you turn 62, but your benefits will be reduced 20 to 30 percent. That's a big chunk, especially if you expect to spend many years in retirement. You might consider working a bit longer or relying on your retirement savings to help cover your living expenses until you can receive full benefits.

2. You can work while getting Social Security. As long as you're 62, you have the option to take Social Security. If you earn more than $13,560 a year between age 62 and your full retirement age, your benefit payments will be temporarily lowered, based on how much you earn. The good news is that you don't actually lose out on those benefits. Instead, your payment amount is recalculated so that you receive more money later on.

3. Your payments won't start automatically. The two rules above mean it makes the most sense for you to tell the Social Security Administration when you're ready to start receiving monthly benefits. You can do that over the phone (1-800-772-1213), in person or through the Social Security online application

4. Your benefits could be taxed. Only a third of Social Security beneficiaries end up paying taxes on their benefits. It all depends on the earnings listed on your income tax return. If you file with more than $25,000 as an individual (or $32,000 jointly), you'll have to pay federal income taxes on your benefits. The rules for state income taxes vary from state to state.

5. Your payments can help your family, too. Let's say your monthly benefits turn out to be three times as much as your spouse's. (It's a common scenario, especially in families where one spouse paused their career to stay home with the kids.) If she waits until her full retirement age to start getting benefits, her payments will be raised so they equal half of yours. After you die, your spouse will get either your monthly benefit check or hers - whichever is more.

Should I Wait Until I'm Out of Debt to Save for Retirement?
Two very good reasons to save for retirement, no matter what:

1. Employer matching. If your employer matches a certain percentage of your 401(k) contributions, it makes good sense to contribute enough to get the full match. After all, why pass up free money?

2. Time is on your side. The sooner you start saving for retirement, the more your money can grow.
If you're suffocating under heavy interest or the minimum payments suck up too much of your income, it's probably best to pay off at least part of the debt before you focus on saving for retirement.

If you decide to save for retirement while paying off debts, here's a few ways you can do it:

1. Do what you can to lower your interest rates by refinancing or, in the case of credit cards, simply asking for a lower rate.

2. Figure out how much money this frees up each month and begin contributing that amount to your 401(k) or IRA.

3. Do what you can to free up other small amounts of money, which you can use to beef up your savings, pay off the debt faster or treat yourself for making great headway toward your long-term goals.

Five Good Reasons to Work During Retirement
1. You're at the height of your career. Experience, perspective, maturity and seniority are all on your side. Many sixty-somethings find they aren't quite ready to give up all that they've achieved in the working world.

2. The world is your oyster. Now's the time to go for your dream job. You're less likely to need the highest salary you can get, so this could be the perfect time to indulge your creative side, jump into the nonprofit world, or simply trade your high-stress job for a more enjoyable one.

3. Even part-time work can help pay bills. When you're raising kids and paying a mortgage, it might seem like you could never live on less than two full salaries. By the time you're ready to retire, your expenses could be much lower.

4. Your transition into retirement will be smoother. Retirement sounds like a wonderland of free time, quiet, and all-around freedom. And for most retirees it is - at first. After the first year or two, though, some people find themselves feeling a bit bored or lost.

5. It could help keep you healthy. Keeping your mind and body active are essential to your health and wellness. As long as your job isn't too stressful, it could actually help keep you going strong.

Life insurance issued by Allstate Life Insurance Company, Home Office, Northbrook, IL; Lincoln Benefits Life Insurance Company, Lincoln, NE. In New York, Allstate Life Insurance Company of New York, Hauppauge, NY.

Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details consult your attorney or tax advisor.

Variable annuities are long-term investments designed for retirement purposes. You should carefully consider the investment objectives, risks, charges and expenses of the investment options before purchasing a contract or investing money. These contracts have limitations and are sold by prospectus only. The prospectus contains important information about the annuity contract, including fees and charges, investment options, death benefits, and annuity payout options. Optional income riders carry additional costs and may have limitations or restrictions. To obtain a prospectus or the underlying portfolio prospectuses, please contact your Allstate Personal Financial Representative. Please read the product prospectuses carefully before purchasing a contract or sending money. Guarantees offered are subject to the claims-paying ability of the issuing company.

Distributions taken prior to annuitization are generally considered to come from the gain in the contact first. If the contract is tax-qualified, generally withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty.

Any annuity payment is dependent on the ability of the issuer to pay its claims. An annuity may impose charges (including but not limited to surrender charges, mortality and expense risk charges, administrative fees, underlying fund expenses and feature charges) that can reduce the value of your account and the return on your investment.

You should carefully consider the investment objectives, risks, charges and expenses of mutual funds before purchasing shares or investing money. Additional information about these and other subjects can be found in the mutual fund prospectus. To obtain a prospectus, please contact your Allstate Personal Financial Representative. Please read the prospectus carefully before purchasing shares or sending money.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. (877) 525-5727.

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