This company leads the way in offering its employees secure income in retirement. Getty Images United Technologies Corp. UTX, +0.58% is the first major company to offer a secure lifetime income default option within their defined contribution plan. The withdrawal amounts are set to last throughout a participant’s retirement, even if the market falls or the account’s assets run out. Insurance companies are then invited each year to bid on the amount they could provide in annual income out of that year’s contributions to the lifetime income portfolio. The Lifetime Income Strategy (LIS) provides employees with the minimum dollar amount that they are guaranteed in retirement. If they view that number as too high or – more likely – too low, they can adjust their saving accordingly. UTC decided to make the LIS the default because people tend to underestimate how long they will live and thus are reluctant to buy insurance against living too long. At the beginning of this year you’re going to start securing guaranteed income. The fees will go up in return for these guarantees, but so will the value of the benefits.” If an employee isn’t in LIS, there’s a communication that says, “Hey, we noticed you’re not in it, and you’re now at the point where you would start to secure guaranteed income. Why haven’t other companies followed?
Do your post-career plans include a change of address? If so, you’re not alone. A 2015 Bankrate survey found that one in five Americans age 65 or older would consider moving to a different city or state for retirement.
If a change of scenery in your later years sounds appealing, the most important question to consider is, “Why?” It’s easy to romanticize the benefits of living in a different city. So, before you start packing boxes, here are four key questions that’ll help make sure you’re relocating for all the right reasons. (See also: 4 Exciting, Affordable American Cities to Retire In)
How would a move impact your finances?
Many people who move in retirement do so for financial reasons. In fact, nearly 75 percent of people age 65 or older said finding a lower cost of living was “extremely important” when thinking about where to retire, according to Bankrate.
Moving for monetary reasons can make sense as long as you look at all sides of the equation. If your retirement account isn’t as fully stocked as you’d like it to be, selling a home that you own outright or have a lot of equity in and buying one that costs less may be wise. Just be sure to factor in other ongoing costs in the town you’re thinking of moving to, such as property taxes, insurance, sales taxes, and more.
You can get a feel for how your cost-of-living may change by using an online calculator, and the Tax Foundation has information about state and local taxes. But do some additional checking. Talk with a realtor to ask about property taxes, and call an insurance agent to see how your homeowners and vehicle insurance costs may change.
How would a move impact your extended family?
A couple of years ago, an older couple I know sold the home they’ve…