1. Change your mindset

When we think about saving for retirement, most of us think about the end goal – the total dollar amount we’ll need, the lump sum. Before you retire, you’ll want to figure out how much of that amount you’ll be able to use each month or each year. This will help you in thinking of your retirement in terms of an income stream and not just a dollar amount.

2. Consider all your income sources

Your retirement plan may not be your only source of retirement income. When you’re figuring out how much income you’ll have once you’re retired, be sure to include pensions, Social Security payments, and other investments or savings in your calculations. You can find out how much you’ll get from Social Security by visiting www.ssa.gov.

3. Think about the best time to start taking income

Most retirement plans won’t allow you to take withdrawals before age 59-1/2 without incurring penalties, but also require that you start taking income by age 70-1/2. Social Security payments increase the longer you wait, but only up to a certain point. You may want to talk to your financial professional to make sure you’ll be able to make the most of your money and benefits - while still meeting your needs.

4. Remember taxes

If you are contributing to a traditional retirement plan right now, you’re putting money into your account pre-tax. That means, you’ll have to pay taxes on both the contributions and any earnings when you withdraw the money. On the other hand, if your contributions go into a Roth account, any money you withdraw at retirement will be tax-free, since you already paid the taxes on it. Keep that in mind as you develop your income strategy.

5. Understand your withdrawal options

When you’re ready to withdraw money from a retirement account, you have a number of options to choose from:

• Fixed dollar amount 
  You withdraw the same amount of money each month, quarter, or year.
• Fixed percentage 
  You take out the same percentage of your portfolio each time, so your income will depend on how much you have in your account.

• Investment earnings only
  You take out only what your account has earned in the last month, quarter, or year. This leaves your principal untouched.

6. Calculate how much income you’ll have.

If you’re a client with Equitable Financial Life Insurance Company, use our Retirement calculator to see what your exact retirement income will be, based on your current contributions. You can also make different changes – such as increasing your contributions – to see how that would affect your future income. Not a client? You can still use our Retirement calculator and fill out what you know. We’ll give you a good estimate of how much income you’ll have.

If you need help developing a retirement income strategy that fits your specific needs, always contact your financial professional. He or she is happy to work with you to ensure that you can look forward to retirement with confidence.