Navigating Your Pension and Investment Options with Confidence
Navigating your pension plan and investment choices can feel overwhelming, but with the right strategy, you can make decisions that build confidence and financial security in retirement.
At Greater Works Wealth, we believe retirement planning isn’t just about numbers—it’s about clarity, purpose, and peace of mind. During a recent workshop, I shared a few practical steps that can help simplify how you access your pension and approach investing before and after retirement.
1. Accessing Your Pension Plan
When it’s time to access your pension, you generally have three options:
Lump Sum or IRA Rollover
You can take your pension as a lump sum and either keep it or roll it over into a qualified account, such as a Traditional IRA. Rolling over allows your money to continue growing tax-deferred until you start withdrawals, while taking the lump sum outright may trigger immediate taxes.
Monthly Income Option
You can also choose to receive your pension as a lifetime monthly income. This provides consistent cash flow and can include survivor benefits for your spouse or beneficiaries.
Hybrid Approach
Some people choose a combination—taking part of the lump sum for flexibility while using the rest for steady monthly income. This can help meet short-term goals while keeping long-term stability intact.
2. Building a Smart Investment Strategy
Retirement isn’t the finish line—it’s the start of a new chapter that requires a thoughtful approach to investing.
Distribution Strategy:
Use a framework like the “guardrails strategy” to manage portfolio withdrawals. This method adjusts your income up or down depending on market conditions, helping you enjoy consistent income without running out of money.
Asset Allocation:
Diversify across stocks, bonds, and cash to balance risk and reward. Tactical investing can help make adjustments when markets shift, while a core passive foundation provides long-term stability.
Tax Awareness:
Plan your withdrawals strategically to reduce taxes over time. Consider tools like Roth conversions, Qualified Charitable Distributions (QCDs), or estate planning to improve tax efficiency throughout retirement.
Life Happens—Plan for It:
Your goals, health, and family dynamics will evolve. Review your investment plan regularly to make sure it keeps pace with your life.
3. The Investment Planning Process
Working with an advisor helps ensure that no piece of your plan gets overlooked. Here’s what our process typically looks like:
Step 1: Initial Conversation
We start by discussing your goals, assets, and what financial freedom looks like to you.
Step 2: Information Gathering
We gather your key financial details—like pension statements, Social Security estimates, and investment account balances—to form a complete picture.
Step 3: Personalized Recommendations
You’ll receive tailored strategies designed to match your goals and risk comfort level.
Step 4: Implementation & Monitoring
Once your plan is in place, we help execute the strategies and continue monitoring them as markets and life evolve.
The Bottom Line
Your pension and investment decisions play a major role in shaping the rest of your life. With clear planning and professional guidance, you can enjoy retirement with confidence—knowing your income, investments, and legacy are working together.
If you’re within one to two years of retirement and want help reviewing your pension options or building a sustainable retirement income plan, let’s connect.
Schedule a Retirement Strategy Session:
No-Hassle Retirement Strategy Session
