Whether retirement is many years away or you’re retiring soon, it’s important to plan ahead. Planning helps you determine how you need to save and invest through the Adventist HealthCare Retirement Plan (AHRP).
Some key steps in the planning process are:
- Create your retirement goals. Think about what you want to do when you retire and where you want to live.
- Determine how much you’ll need. Consider what your expenses will be. For example, if you’re no longer working, you may pay less in income taxes but your medical expenses could increase.
- Project your retirement income. You can use the AHRP income projection tool to estimate how much you’ll have from savings, Social Security, and IRAs and other sources.
- Get advice when you need it. If you have an AHRP account balance of $5 or more, you can get help with investing through Aon Hewitt Financial Advisors. Two services are available: Online Advice or Professional Management.*
- Adjust your AHRP savings and investments as needed to get you closer to meeting your goals. See Your Retirement Checklist at Any Age for other changes you might consider.
- Find ways to make your money last. When you retire, ensure your savings continue to grow and keep up with inflation. One AHRP retirement investment option that offers a guaranteed lifetime income stream and protection from market downturns is the Prudential IncomeFlex Target Fund.
*AFA does not provide advice on the Prudential IncomeFlex Target® investment due to the “guaranteed income” feature in the investment. AFA cannot model the investment within a Professional Management account, nor provide advice on it. However, for participants that elect to invest in the Prudential IncomeFlex Target® investment, the Online Advice tool is available. The tool will not provide advice on the Prudential IncomeFlex Target® investment.
If You’re Retiring Soon
As your retirement date approaches, there are a few other things to think about:
- When to withdraw money from your AHRP account. Review what you need to know before you begin receiving your savings
- How you want to receive your AHRP savings. Review your choices. You can leave your money in the plan, roll it over to another qualified plan or IRA, or request a cash payment. Use the Cash Out vs. Roll Over tool to compare the impact of taxes for two of the choices.
- How and when to apply for other government benefits. Depending on your age when you retire and how long you’ve been working, you may be eligible to receive Medicare and Social Security benefits. Learn about these benefits and the application process so that you have them when you need them.