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www.dsea-r.org DSEA-Retired ��� the commitment continues���. It���s the $64 million question: How much money do you need to retire? - from the NEA-Retired Retirement Planning Booklet (www.near.org/retired) oday experts say that you need nearly as much money after retirement as you did when working. The reason is that no one wants to lower the standard of living they���ve worked so hard to achieve. Nor do retired people want to become less active. In fact, most people want to continue with all the civic, social, travel and other recreational activities that are such a big part of life right now. The bottom line? You certainly don���t want to retire without adequate income. Inflation and increased medical expenses are factors that we can expect to continue to face during retirement, but we don���t have to face them unprepared. Your Association believes it is important that you begin to assess your retirement income needs at an early age, and analyze the various sources of income available to meet them. Discrepancies between income needs and income sources can then be identified well in advance, in order to avoid retiring without adequate income. T What about annuities? One investment option that is popular as a vehicle for the accumulation of retirement funds is the annuity Annuities are contracts . which can be purchased during the pre-retirement years from insurance companies to provide income for a specified period of time, usually after retirement. Annuities are available to all persons, but the tax-deferred annuity (TDA) is a special type of annuity that is only available to employees of certain institutions. Under Internal Revenue Code Sections 501 (c) (3) and 403 (b), employees of edu- cational institutions and certain public institutions may reduce their income by permitting their employees to pay part of their earned income into an account where tax is deferred on the account until money is withdrawn, usually after retirement. ���Tax deferred��� means that payment of Federal and many times state taxes on the portion of annual salary invested in an annuity can be delayed or ���deferred��� until such funds are received from the annuity by the annuitant or a beneficiary . Taxes are also deferred on the interest earned by the investment. 8 February 2013 DSEA ACTION! Other sources of income after retirement As a rule, for a monthly income of $500, you���ll need about $50,000 in savings; for an income of $1,000 a month, you���ll need about $100,000 in savings. With the economy as it is, the above amounts may be conservative. Every individual would benefit from speaking to a financial advisor about their individual situation. The following is a brief list of sources of retirement income. 1. Social Security retirement benefits 2. Private retirement plans a. Employer-provided pension plans b. Retirement plans for the selfemployed c. Individual retirement accounts (IRA���s) d. Employer-funded savings under section 457 e. Tax-deferred annuities under section 403 (b) f. 401 (k) g. Thrift plans 3. Life insurance with cash values 4. Investments and other privately owned assets (such as equity in your home, mutual funds, stocks and bonds, and personal savings accounts) For additional information, go to www.nea.org/retired. www.dsea.org