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Retirement Planning

Income Generation

A New Horizon. Once you've reached retirement, it's time for all your hard work to start paying off. But to help your nest egg last as long as you do, it's important to stay proactive. Consider when you want to begin taking distributions, how much you should take each year, and how taxes may affect your assets.

In other words, your investing journey isn't over. It has shifted into a new phase.

Timing Is Everything

Early withdrawal hypothetical infographic. How you'll be taxed on retirement income depends largely on when you decide to retire. If you take income too early or too late, you may trigger additional tax consequences. If your employer-sponsored retirement plan is your largest source of retirement income, it may be a good idea to step back, take a breath, and consider the big picture before you decide the timing and amount of your distributions.

Watch for Speed Traps

  • Distributions are taxed as ordinary income
  • 20% mandatory withholding for federal taxes
  • 10% additional tax for distributions before age 59½ (or age 55 if separation from service occurs after age 55)
  • Loss of tax-deferred growth potential of your assets
  • Less money accumulated for retirement

How you choose to take your distributions can also determine how much you may have to pay in federal income tax. Choosing a lump sum can have a negative tax impact, and taking too much in systematic withdrawals may deplete your account too quickly. Whether you're planning a long retirement or you decide to delay your retirement, it's important to consider how the withdrawal rate you choose can affect your retirement income in the long run. The chart below illustrates what a difference 1% can make in how long your money may last.

Hypothetical on how withdrawal rates could affect your retirement income.

Don't Forget Taxes

In retirement, just because your paycheck stops doesn't mean taxes do. As you start your distribution phase, it's important to consider how your distributions will be taxed.

Hypothetical on how distributions affect your tax bracket infographic. Hypothetical social security income can be taxed chart.

For more information on how taxes can affect your income, even in retirement, we've got a handy guide to Tax Deferral and Taxes & Inflation. And remember, market volatility is always an important consideration when deciding when to retire and how to handle income distributions. Our investor's guides to Asset Allocation and Portfolio Rebalancing can help keep you on track.

Retirement Hub for iPad®
Retirement Hub - Intelligent, Interactive Information.

We provide interactive apps to help make even the most advanced investment concepts easy to understand.

Retirement Calculators
Calculator sitting on top of papers

These calculators will help you determine whether you’re on track for your personal financial goals.

Jackson Annuities
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Explore the investment freedom and flexibility of our various annuity offerings.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a "non-natural person" such as a corporation or certain types of trusts.

Jackson® and its affiliates do not provide legal, tax or estate-planning advice. For questions about a specific situation, please consult a qualified advisor.

Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact Jackson for more information.

Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®.

• Not FDIC/NCUA insured • Not bank/CU guaranteed • May lose value •
Not a deposit • Not insured by any federal agency

CMN16247 02/17

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Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951