What Is Pre-Retirement and Why Consider It?

Shawn Plummer

CEO, The Annuity Expert

Understanding Pre-Retirement

Pre-retirement refers to the phase leading up to retirement. It’s a critical time for financial planning, during which individuals often assess their readiness for retirement. This period involves evaluating various income sources for retirement, such as:

  • Retirement Savings: Money saved through 401(k)s, individual retirement accounts (IRAs), and other retirement plans.
  • Social Security Benefits: Government-provided income based on your work history.
  • Investment Portfolio: Includes stocks, bonds, mutual funds, and other investments.
  • Pension Benefits: Income from employer-sponsored retirement plans.
Income In Retirement

Importance of Pre-Retirement Planning

  1. Income Assessment: Understanding your potential income sources, like Social Security, pensions, and investments.
  2. Expense Forecasting: Estimating future expenses to ensure your retirement income suffices.
  3. Risk Management: Balancing investment risk with the need for growth.
  4. Tax Planning: Minimizing tax liabilities through strategies like Roth conversions or tax-efficient withdrawals.

Retirement Income Strategies

  • Annuities: Insurance products providing guaranteed income.
  • Diversified Investments: A mix of stocks, bonds, and other assets to balance growth and risk.
  • Tax-Deferred Accounts: Using IRAs and 401(k)s to defer taxes on savings.
Pre-Retirement Income

Role of Financial Professionals

  • Financial Planners: Help in creating comprehensive retirement plans.
  • Tax Professionals: Offer advice on minimizing tax liabilities.
  • Insurance Advisors: Guide on products like annuities for stable income.

Preparing for Uncertainties

  • Health Care Planning: Ensuring enough savings for health-related expenses.
  • Long-Term Care Insurance: Considering insurance to cover long-term care needs.
  • Estate Planning: Preparing for wealth transfer and end-of-life financial matters.
Retirement Plan

Pre-Retirement Checklist

AspectAction Item
Income SourcesEvaluate Social Security, pensions, investments
Expense EstimationForecast future living and health care costs
Investment StrategyBalance growth with risk tolerance
Tax PlanningOptimize tax liabilities
Professional GuidanceConsult financial planners, tax experts
Health Care & InsurancePlan for health expenses and insurance needs
Estate PlanningPrepare wills, trusts, and beneficiary designations


Pre-retirement is an essential phase for ensuring a financially secure and comfortable retirement. It involves careful planning around income sources, expenses, investments, and tax strategies. Consulting with financial professionals can provide invaluable guidance. A well-planned pre-retirement strategy will leave you feeling prepared for the years ahead.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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