T. Rowe Price Retirement Plan Services (2024)

FAQs

How do I contact T. Rowe Price retirement plan services? ›

Rowe Price suggests the 4% guideline as a starting point for a withdrawal strategy. This means that in the first year of retirement, you could consider a withdrawal amount that is 4% of your retirement account balance. Every year, reassess the following to adjust your withdrawal amount if needed: Your spending needs.

A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year. In this case, you may need additional income, such as Social Security, to supplement your retirement.

Some strategies call for having 10 to 12 times your final working year's salary or specific multiples of your annual income that increase as you age. Consider when you want to retire, goals, annual salary, expected annual raises, inflation, investment portfolio performance and potential healthcare expenses.

If you opt to cash out your 401(k), you'll need to contact your 401(k) plan provider and have them send you the money either electronically or via paper check. This process can take anywhere from a few days to a few weeks.

To withdraw assets, contact T. Rowe Price at 1-800-492-7670 or at P.O. Box 17350, Baltimore, MD 21297-17350. Please note that if you have not yet reached age 59½ and no exception applies, you may be subject to a 10% penalty.

For an income of $80,000, you would need a retirement nest egg of about $2 million ($80,000 /0.04). This strategy assumes a 5% return on investments, after taxes and inflation, no additional retirement income, such as Social Security, and a lifestyle similar to the one you would be living at the time you retire.

£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.

More? Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.

According to the $1,000 per month rule, retirees can receive $1,000 per month if they withdraw 5% annually for every $240,000 they have set aside. For example, if you aim to take out $2,000 per month, you'll need to set aside $480,000. For $3,000 per month, you would need to save $720,000, and so on.

What is a good monthly retirement income? ›

Average Monthly Retirement Income

According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.

When asked what a safe amount would be, she explained that it would be in the millions but depends on several factors, such as where you live, your expenses, and whether you own a home outright. She believes the amount you'd need to retire early would be closer to $5 or $10 million.

This money will need to last around 40 years to comfortably ensure that you won't outlive your savings. This means you can probably boost your total withdrawals (principal and yield) to around $20,000 per year. This will give you a pre-tax income of almost $36,000 per year.

Wait to Withdraw Until You're at Least 59.5 Years Old

By age 59.5 (and in some cases, age 55), you will be eligible to begin withdrawing money from your 401(k) without having to pay a penalty tax. You'll simply need to contact your plan administrator or log into your account online and request a withdrawal.

Your account numbers and/or your investor number can be found on your paper statements, tax documents, and other information you receive from T. Rowe Price. An account number or investor number is required when establishing your online access for the first time.

Talk to your employer, your bank, your union, or a financial adviser. Ask questions and make sure you understand the answers. Get practical advice and act now.