You may have the option to stay enrolled in your retirement plan after you retire – and it can provide important advantages. You’ll get the same free support and lower fees you had before. You’ll also give your money the chance to keep growing but have access to it when you need it. Here’s what you should know:
- Check with your employer to see if you’re eligible to stay in your plan; some plans have specific requirements, such as maintaining a balance above a certain threshold
- If you’re eligible, your retirement account may automatically stay open after you retire unless you withdraw all your funds
- If you remain in the plan, you’ll still be able to manage your investments, withdraw funds and get help from knowledgeable professionals
- You will no longer be able to make payroll contributions but you may be able to roll-in eligible funds
Tips for managing your account after you retire:
- Continue to review your account at least once a year; that way, you can make sure your asset allocation (how your portfolio is divided among assets like stocks, bonds and cash) still lines up with your goals
- If you’re invested in a Target Date Fund (TDF), consider what the asset allocation will be during your retirement and whether it will rebalance beyond the target date. Some reach their most conservative mix of investments when they reach the target date, while others continue to rebalance into your retirement years. You can check the fund fact sheet or prospectus on your plan's website for more information about the fund you’re invested in. If your current fund doesn't fit your goals for after retirement, your plan representative can help you review other options in your plan.
- Create a withdrawal strategy to help you get the most from your retirement savings; it can help you establish how much and how often to withdraw money to get the greatest benefit