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Retirement Income Redzone Worksheet

Jul 15, 2020 5 min read

 

How much money will you need?

If you’ve recently retired or started thinking about retiring, you’re in what Prudential calls The Retirement Red Zone, when having a strategy for turning your savings into a lifetime of income becomes more important. Work with your financial professional to complete this worksheet as a first step in planning for your future. It can help you define your retirement goals, establish a budget, and identify your desired lifestyle in retirement.

 

Covering your essential expenses

In retirement, you’ll have essential and discretionary expenses. Essential expenses are your basic needs (housing, food, healthcare), and discretionary expenses are the fun things that you dream of doing in retirement.

Estimating your future essential expenses and making sure you can afford them is critical for your future. That’s why using guaranteed sources of income to pay your essential expenses can help ensure that your necessary needs are covered. And identifying any income gaps now may make it easier to help you plan for a more secure future.

 

Sources of guaranteed income

Essential expenses:

  • Pension
  • Social Security
  • Annuities

Discretionary expenses:

  • Mutual Funds
  • Stocks/Bonds
  • 401(k)
  • IRAs

 

Calculate your essential expenses and income

Remember to consider your spouse or your partner in your calculations.

Step 1

– Identify and estimate monthly essential expenses

  • Loans (mortgage, auto, college): $ Amount to be filled
  • Utilities (electric, gas, water, cable, phone): $ Amount to be filled
  • Healthcare (prescriptions, physician, co-pays): $ Amount to be filled
  • Food: $ Amount to be filled
  • Taxes (home, auto): $ Amount to be filled
  • Insurance (auto, home life): $ Amount to be filled
  • Other: $ Amount to be filled

Total estimated essential expenses: $ Amount to be filled

 

Step 2

– Identify and estimate monthly guaranteed income sources

  • Social Security (visit ssa.gov for income estimate): $ Amount to be filled
  • Pension: $ Amount to be filled
  • Employment: $ Amount to be filled
  • Annuity: $ Amount to be filled
  • Other: $ Amount to be filled

Total estimated guaranteed income: $ Amount to be filled

 

Step 3

– Identify your income gap/surplus

  • Subtract the total of Step 2 from the total of Step 1: $ Amount to be filled

 

Do you have a retirement income gap to fill?

Talk with your financial professional today to discover how guaranteed lifetime income from Prudential can help you have a more secure retirement.

Footnotes

For Compliance Use Only:1006572-00002-00

 

Issuing companies are located in Newark, NJ (main office). Annuities are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with complete details.

All references to guarantees are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options. Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant.

© 2019 Prudential Financial, Inc. and its related entities. Prudential Annuities, Prudential, the Prudential logo, the Rock symbol, Bring Your Challenges, and The Retirement Red Zone are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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