Once you reach retirement, the hard work of determining an appropriate rate of withdrawal from your personal savings and investments begins. To do this you need to factor into your plan risks such as inflation, longevity and the potential reduction or loss of Social Security benefits, as well as:

Ø       Overall market performance.  Consider risks to your investments themselves. Although market volatility is a normal part of investing, it can pose a daunting challenge to investors nearing or already in retirement. This is the time when people have the most to lose and the least amount of time to recoup their losses. Unfortunately, the timing of potential market losses and gains is something you can’t control.

Ø       An appropriate withdrawal rate.  Regardless of your situation, it may be prudent to adopt a conservative savings withdrawal rate of no more than 4% to 5% of your portfolio’s value each year. This approach should help safeguard your nest egg against losses in a down market and preserve a stream of income for 20 years or more.

Ø       A balanced approach to investing.   In conjunction with drawing a conservative retirement “paycheck,” you may need to keep your portfolio working with a healthy allocation of equities. Of course, you don’t want to invest too aggressively, but by maintaining a well-balanced portfolio, you come closer to ensuring the steady income and long-term investment growth so vital to a long retirement.  John Hancock variable annuities offer a series of Lifestyle Portfolios designed to provide optimal asset allocation in one portfolio.

Ø       Additional guaranteed sources of income.  In addition to making make it easier for you to help maintain a balanced asset allocation and shelter your assets from the market’s ups and downs, annuities may also provide guaranteed¹  income for life.