Living in Retirement

You've got some important decisions to make that can help your retirement income last.

Things To Think About

Now that your retirement years are here, it's vital to have a strategy for your current and future income needs. Consider guaranteed sources of income that can help provide enough for your basic living expenses.^{See note1}

Making careful decisions about Social Security benefits, your health care needs, estate planning and strategies for taking required minimum distributions from retirement accounts can help your retirement income last.

Using one of our retirement income tools can help you identify possible income gaps and the solutions that may work best for you.

Creating and Managing Income

The regular paycheck you've relied on all your working life has stopped. What comes next?

A Spending Plan Is Crucial

Now that your earned income stream has stopped, it's important to have a spending plan that includes details about your sources of income and a breakdown of your essential versus nonessential expenses. A financial advisor can help.

Use of Guaranteed Income

Consider sources like Social Security, pensions and other guaranteed products to cover essential expenses such as food, housing, utilities and insurance. This approach can offer an additional level of protection for your financial security.

Anticipating Your Needs in Retirement

Planning for retirement can be challenging, especially with health care and other factors to consider. Reviewing these future financial needs now may help you structure your retirement savings to last as long as you need them.

Life Events

Unexpected events like divorce, failing health or becoming a caregiver can affect retirement. Careful planning may help you manage your finances effectively.

Health Insurance Costs

While government health insurance programs like Medicaid and Medicare can offer many benefits, you may need to review your health insurance coverage periodically.

Inflation

Loss of purchasing power is an obstacle to making your retirement savings last. It's important to be aware of the impact inflation can have on your portfolio over time.

How We Can Help

USAA offers banking, investment and insurance products designed to help you achieve and protect financial security.

Income Annuities

Having a stream of monthly income for life or just for a specific period can take some of the worry out of meeting monthly expenses during retirement.

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Health Insurance Solutions

Review your existing health insurance coverage. From supplemental retirement health solutions to Prescription Drug plans, you've got choices with USAA.

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Why Choose USAA

We help take a holistic approach to savings and retirement that considers your financial picture. Our reputation for excellence arises from our military values of service, loyalty, honesty and integrity. It's a commitment we share with those we serve.

Don't Just Take Our Word For It

A++

Superior

AA+

Very Strong

Trust Services

Help protect your finances now and provide for loved ones long after you are gone.

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Rollovers and Transfers

Having your retirement accounts in one place may help you better manage your money.

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Contact USAA

For help or personalized advice, call us at 800-771-9960 to speak to an advisor.

Investments/Insurance: Not FDIC Insured • Not Bank Issued, Guaranteed or Underwritten • May Lose Value

Investing involves risk, including potential loss of principal.

Note 1 Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer's claims-paying ability and financial strength.

Bank products provided by USAA Federal Savings Bank, Member FDIC.

Beginning Jan. 1, 2015, you may do only one IRA rollover during any 12-month period regardless of how many IRAs you own.

Prior to requesting an IRA rollover from a qualified retirement plan account, consider whether such rollover is appropriate for you. Although IRA rollovers may have certain advantages, qualified retirement plan accounts have advantages you should consider before proceeding which may include, but are not limited to, low administrative and investment expenses and, if you separate from service at age 55 or older, you have penalty-free access to your qualified retirement plan account funds. Additionally, you may want to consider maintaining at least a minimal qualified retirement plan account balance because, in the event you want to transfer or rollover qualified assets to your qualified retirement plan account in the future, to the extent it is allowed by your plan, your plan may require you to have an open account with a balance when your request is received by that plan. You should consult your tax advisor regarding your specific situation to determine whether a qualified retirement plan account rollover to an IRA would be suitable for you.

Prior to requesting an IRA rollover from a Thrift Savings Plan (TSP) account, which is a retirement plan for military or civilian employees of the U.S. government, consider whether such rollover is appropriate for you. Although IRA rollovers may have certain advantages, TSP accounts have advantages you should consider before proceeding which include, but are not limited to, low administrative and investment expenses and, if you separate from government service at age 55 or older, you have penalty-free access to your TSP account funds. Additionally, you may want to consider maintaining at least a minimal TSP account balance because, in the event you want to transfer or rollover qualified assets to your TSP account in the future, you must have an open TSP account with a balance when your request is received by the TSP. You should consult your tax advisor regarding your specific situation to determine whether a TSP rollover to an IRA would be suitable for you.

Withdrawals from an IRA made prior to age 59½ may be subject to a 10% penalty tax.

If you receive a check made payable to you, your former employer is generally required to withhold 20% of the total amount. When you deposit the check into your IRA, you must make up that percentage from your own resources if you wish to avoid being taxed on the withheld amount. At tax time, you can apply to get the withheld 20% back, but it could be a long way off. A better approach is usually to roll the money over directly without ever receiving it.

Traditional IRA distributions may be taxed as ordinary income. Qualified Roth IRA distributions generally are distributions made after the Roth IRA account has been open for at least five years and the owner has reached age 59½, died, became disabled, or is using the distributions for first-time home buyer expenses as defined by the Internal Revenue Code.

Other options are available besides rolling over your employer-sponsored retirement plan, and an employer-sponsored retirement plan can offer advantages investors can't get if they roll the money into an IRA.

An annuity is a long-term insurance contract sold by an insurance company designed to provide an income, usually after retirement that cannot be outlived. There are fees, expenses and surrender charges that may apply.

Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.

Health solutions provided by USAA Life Insurance Company and through USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAA Health and Life Insurance Agency), which acts as an agent for select insurance companies to provide products to USAA members. LGA representatives are salaried and receive no commissions. However, LGA receives compensation from those companies, which may be based on the total quantity and quality of insurance coverage purchased through LGA. Plans not available in all states. Each company has sole financial responsibility for its own products.

USAA means United Services Automobile Association and its affiliates. Financial advice provided by USAA Financial Advisors, Inc. (FAI), a registered broker dealer, USAA Investment Management Company (IMCO), a registered broker dealer and investment advisor, and for insurance, USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California, License # OE36312). Investment products and services offered by IMCO and FAI. Life insurance and annuities provided by USAA Life Insurance Co., San Antonio, TX, and in NY by USAA Life Insurance Co. of New York, Highland Falls, NY. Other life and health insurance from select companies offered through USAA Life General Agency, Inc. (known in CA (license #0782231) and in NY as USAA Health and Life Insurance Agency). Banking products offered by USAA Federal Savings Bank and USAA Savings Bank, both FDIC insured. Trust services provided by USAA Federal Savings Bank.

Trust Services offered by USAA Federal Savings Bank. Member FDIC.

Membership eligibility and product restrictions apply and are subject to change.

A.M. Best: A++, Superior (Highest of 16 possible ratings); Moody's Investors Service: Aa1, Excellent (Second highest of 21 possible ratings); Standard & Poor's: AA+, Very Strong (Second highest of 21 possible ratings).

Company ratings represent an opinion of financial strength and the company's ability to meet ongoing obligations to policyholders.

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