This comprehensive retirement planning guide from Security Pension covers the fundamentals every American needs to understand before and during retirement.
Retirement Accounts: 401(k), IRA, and Roth IRA
Tax-advantaged retirement accounts are the foundation of most retirement plans. A 401(k) through your employer allows pre-tax contributions up to $23,500 in 2025 ($31,000 if you are 50 or older). Traditional IRAs offer similar tax-deferred growth with a $7,000 annual limit. Roth IRAs use after-tax contributions but provide tax-free withdrawals in retirement.
Social Security Timing
When you claim Social Security has a dramatic impact on your lifetime benefits. You can start as early as 62 at a reduced rate, claim your full benefit at your Full Retirement Age (66-67), or delay until 70 for an 8% annual increase.
The 4% Rule and Withdrawal Strategies
The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year after. Many financial planners now recommend a flexible withdrawal strategy rather than a rigid percentage.