will my money last? by Norma Jackson Goldman For those facing retirement, one of the most difficult questions to answer is, "Will the income I'm depending on last throughout my retirement years?"   To learn more about the Free Will Baptist Board of Retirement, vist www.nafwb.org or call (877) 77-7738.

FOR THOSE FACING RETIREMENT, one of the most difficult questions to answer is “Will the income I’m depending on last throughout my retirement years?”

It’s a good question, but there are no simple answers. Consider these realities:

• People are living longer.

• Traditional pensions are fading from the scene.

• Savings have grown at a slower pace in recent years due to declining interest rates.

• The long-term viability of Social Security is a subject of national debate.

• Soaring health care costs can change a comfortable retirement income into a “barely getting by” income.

• Retirees depending on part-time work cannot be sure that their health will allow them to continue as long as desired or needed.

Before long, a workforce of more than 75 million will be dependent on Social Security as their primary source of income in retirement. For a few, savings will supplement their Social Security income. For fewer still, different types of investments will contribute money. However, a good retirement scenario is one in which a retiree has several sources of income—a pension, savings, some investments (stocks or bonds) and Social Security.

As you anticipate retirement, list your planned sources of income. Are there steps you can take to improve your situation? Could you step up your savings or contribute more to investment plans? Could you dedicate all future salary increases to savings and/or investments? Could you reduce income requirements and living expenses by downsizing, using a portion of the sale of property for new investments/savings? Can you develop a strategy to ensure your mortgage has been paid off by retirement?

To make savings and investments last over your lifetime, most financial planners suggest investments that earn 3-5% each year. Since earnings have been less than 3% on ordinary savings accounts for the last several years, you will have to aggressively seek savings institutions that pay more. And don’t forget to consider the tax implications of money drawn from investments.

Upon reaching retirement, consider converting your 403(b), 401K, or IRA assets into an annuity—a vehicle to provide a stream of income over a single or joint lifetime. The Board of Retirement plan offers six different annuity options. We will help you select the best one for you.

We have a natural tendency to think retirement is far away, that there will be plenty of time to plan for it. In reality, a little time is the best possible news! You have time to increase savings and investments, allowing funds to grow over the years. But time has a way of sneaking up on us, and retirement years come much sooner than you think. Scripture admonishes believers to plan for the coming winter. A little time spent in planning now will yield rich rewards when retirement day finally arrives!

ABOUT THE WRITER: Former magazine editor Norma Goldman enjoys a free-lance writing career in her retirement. She lives in Nashville, TN. For more information about the Board of Retirement, call (877) 767-7738