Pre-Retirement

Expert Advice

Stick with your savings program.
Adjust your investments for a shorter time horizon.
Determine retirement income and expense needs.
Examine your retirement plan distribution options.
Consider long-term care.
Prepare your estate plan.

Pre-Retirement: Make Adjustments to Your Retirement Plan

You've worked hard all your life, now you are approaching the end reward — retirement. Just because the end is in sight, does not mean you should stop planning or saving for the future. Indeed, pre-retirement is one of the most important times in the whole retirement-planning process.

First of all, do not stop saving! Next, adjust your investments to reflect your shorter time horizon and to protect what you have saved. Start repositioning your investment styles to meet your short-term retirement needs. Although you invested in riskier options that were adequate for a longer time horizon, now is the time to consider safer investments for your upcoming life event, retirement.

Determine your retirement needs and expenses. Then plan an appropriate budget. Also, examine your retirement plan’s distributions and choose one that will provide adequate income during retirement.

Plan for Long-term Care and Prepare Your Estate Plan

Additionally, pre-retirement is a good time to prepare for long-term care. As you age, the possibility increases of you requiring long-term care for illness. Without proper insurance coverage, your finances could be severely weakened and your retirement dreams hampered by mounting health care bills. Purchase long-term care insurance to supplement your existing healthcare coverage and to protect your retirement plan.

Also, it may seem strange to begin planning for your estate when you have not even retired. But a well-planned estate gives you more control over the distribution of your assets so that the people you choose can benefit from your lifetime of planning and hard work.

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AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.