There’s a lot to consider as you think more seriously about your transition to retirement. So it’s important that you know what is and isn’t true about the options you have.
Check out our video on five common myths we often hear when helping participants prepare for their transition away from work. Below the video you’ll find more information about the real retirement facts.
We’re here to help.
Nationwide is here to help you prepare for your retirement – whether it’s happening soon, or is still a few years away – and we’ll continue to be there for you throughout your retirement. Call 1-866-975-6363 or schedule an appointment to speak with a Nationwide Retirement Consultant today.
Get the information you need to know to plan for a smooth transition
Truth: You can keep your investments in your 457 plan and let them continue working for you.*
You do not have to move your money out of your 457 plan or roll it into an IRA. Nationwide can continue to help as you adjust your investment strategy to help achieve your goals throughout retirement.
Why keep your assets in the plan?
- You have access to a wide range of investment choices that are carefully monitored and selected for you.
- Your 457 plan offers features and services at a cost other retail investing programs may not be able to match.
- If you roll your 457 assets into an IRA or another retirement account, future withdrawals taken from that account before age 59½ may have a 10% penalty.
- If you roll assets from other retirement accounts into your 457 plan, you may be able manage your investments more easily and possibly avoid their fees.**
- You get personal assistance from Retirement Specialists. They do not work on commission and are here to help you make decisions that are right for you, not pressure you with sales pitches.
*Assets remaining in your account may be subject to market risk.
**Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½. Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your legal or tax advisor for such advice.
Truth: You can wait. Delaying when you file could increase your annual benefit by as much as 76%.1
Filing for Social Security is one of the biggest financial decisions you’ll make. Your Retirement Specialist can help you consider your total retirement picture. We can help you understand:
- Which of the 2,700+ Social Security filing rules may impact you the most
- What impact your filing decisions may have on your spouse’s benefits
- How Social Security choices affect your plan for retirement
Using our exclusive Social Security 360 Analyzer®, we’ll help you see how your Social Security decisions can affect your income in retirement. This tool translates your personal information, including all of your income sources, into an easy-to-understand filing strategy overview.
Truth: Medicare only covers about 62% of your total health care costs — you are largely responsible for the rest.2
When you consider that many people retire before they’re Medicare eligible, and people are living longer in retirement, out-of-pocket health care costs may be greater. In fact, these costs will likely be your second greatest cost in retirement after housing.3
- Average out-of-pocket health care expenses could total $220,000.4
- 70% of Americans over 65 will need some sort of long-term care.5
If you haven’t planned for these expenses, Nationwide can help.
- Using the My Health Care Estimator®, we can give you a quick estimate of your projected health care costs in retirement.
- For a more complete cost assessment, call a Retirement Consultant for an in-depth Health Care Cost Assessment based on your current health condition and your outlook for retirement.
Truth: You do not need to begin withdrawing funds immediately upon retirement.
In fact, keeping all or a portion of your funds invested may help your money last. However, you have options concerning what to do with the assets you have accumulated in your 457 plan account:
- Leave your money where it is and allow it to continue working for you
- Take a lump sum withdrawal or set up periodic payments from your plan account (systematic withdrawal)
- Purchase an annuity contract from an insurance company; annuities are not all the same, so it’s important to learn the differences.
- Roll your money over to another plan or IRA, but there may be fees associated with those accounts
- A combination of two or more of the options above
With average life expectancy getting longer, you may need retirement income for 20 to 30 years after you retire. Your Nationwide Retirement Consultant is here to help as you explore your options and prepare a strategy for income through retirement.
Note: You must receive at least a minimum distribution from your retirement assets no later than April 1 following the year you reach age 70½.
Truth: Allocating your assets across a mix of investments is smart, even in retirement.
Doing so provides a balance between protecting your money and allowing it to continue to grow.
- Numerous studies indicate that if you want to reduce the probability of running out of assets over a long retirement, you may need a healthy exposure to stocks – as much as 35% to 40% of assets, depending on various factors.6
- To understand your retirement-income options, you need to consider all of your resources – including pensions, Social Security and any other sources of income.
To get started, log on to your retirement account and use My Interactive Retirement Planner®. This tool can help you look holistically at all of your resources for retirement income.
Then, contact your Nationwide Retirement Consultant. Together, you’ll detail your complete financial picture and create an investment mix that can help you achieve your goals.
Plan your retirement transition with confidence.
If you’re planning to retire soon, or just have questions, call 1-866-975-6363 today to speak with a Nationwide Retirement Consultant so you can make the most of your retirement income.
We’re here for you.
Call 1-866-975-6363 to speak with a Nationwide Retirement Consultant today. Monday – Thursday, 8:30 a.m. – 6:00 p.m., Friday 8:30 a.m. – 5:00 p.m. ET
Social Security 360 and Social Security 360 Analyzer are service marks of Nationwide Life Insurance Company. My Health Care Estimator is a service mark of Nationwide Mutual Insurance Company.
1 Nationwide as of May 2016. Based on an individual with retirement age of 66, comparing early filing at age 62 and receiving reduced benefits of 75% of primary insurance amount versus delayed filing at age 70 and receiving credits to increase benefits by 32% of primary insurance amount.
2 “How Much Does Medicare Cover?” EBRI Fast Facts. #251 (October 17, 2013).
3 “Average Annual Expenditures and Characteristics,” Consumer Expenditure Survey, Bureau of Labor Statistics (percentage of total expenditure for 75+ year-olds) (2012).
4 Fidelity Benefits Consulting. Based on a hypothetical couple retiring at age 65 years or older, with average (82 male, 85 female) life expectancies (2013).
5 “Medicare & You 2014.” U.S. Department of Health and Human Services (September 2013).
6 “Retiree Stock Allocation Recommendations: Do You Fit the Mold?” American Association of Individual Investors (February 2004).