There are a number of strategies for managing your post retirement income sources. One idea, which I discussed earlier, is to postpone taking Social Security until you reach age 70. A five-year delay is worth about 35 percent more in monthly benefits. You may want to consider buying a five-year immediate annuity to replace the income you are electing to defer from Social Security.

If at all possible, make sure that you avoid penalties on withdrawals from your retirement plans. (more…)

The federal government insurance agency, called the Pension Benefit Guarantee Corporation (PBGC), insures the funds of defined benefit plans. The PBGC does not guarantee that the pension is as large as if the company remains solvent. If the company you worked for with a defined benefit plan goes bankrupt, the PBGC takes over benefit payments — but only to a certain limit ($36,000 a year in 1999). (more…)