In your 60s, focus on retirement budgeting, taxes, Social Security, and withdrawals. A 63-year-old with $1.35 million in a traditional IRA and $2,200 monthly Social Security benefits serves as an example. Consider when to retire, as it impacts Social Security benefits and required minimum distributions (RMDs). Consider delaying Social Security until 70 for higher benefits.

Retirement planning involves balancing withdrawals, portfolio growth, and taxes. Withdrawals from pre-tax accounts like traditional IRAs are taxed, and Social Security benefits can be taxed based on income. Longevity should also be considered, as life expectancy impacts financial planning. By 65, expect to live 17-20 more years, planning to at least age 95 is advisable.

Your retirement income is a combination of withdrawals, portfolio earnings, and taxes. A sustainable withdrawal strategy should cover your lifestyle while accounting for inflation. Withdrawals from pre-tax accounts are taxed as ordinary income, and Social Security benefits can also be taxed based on combined income. Plan for potential tax implications on your retirement income.

Read more at Yahoo Finance: I’m 63 With $1.35 Million in My IRA and a $2,200 Social Security Check. What’s My Retirement Budget?