Retirement means something different to everyone. For some, it’s finally having time to travel or volunteer. For others, it’s staying close to home, helping with the grandkids, or picking up part-time consulting work.

Whatever your vision, the first step is to define what retirement looks like for you, not what a calculator or generic estimate says it should be.

Start by asking yourself and your spouse questions like:

• When do we want to retire—and where?
• Will we have a mortgage or other debts?
• What activities or travel do we want to enjoy?
• Will either of us work part-time or start a small business?
• What legacy do we want to leave for our family?

Once you’ve talked through your goals, it’s time to build a strategy that brings all the moving parts together—your current savings, income sources, debt, and any future obligations.

A personalized retirement plan should incorporate:

• Inflation assumptions
• Current and projected tax rates
• Potential Required Minimum Distributions (RMDs) from your retirement accounts

As a trusted retirement advisor in Harrisburg, PA, 1st Choice Financial Services, Inc. is here to help you create a retirement plan that matches your life stage, income, and future goals. Whether you're a seasoned saver or just beginning to think seriously about retirement, we’re ready to walk with you, step by step.

One of the most essential steps in retirement planning is understanding how to coordinate your various income sources.  If you'll need to rely primarily on Social Security, a pension, part-time work, or a mix of all three, each source plays a role in your long-term financial picture. Let's take a look at each one.

Social Security Benefits 

You may be able to optimize Social Security benefits by delaying your claim past your full retirement age. Depending on your birth year, waiting until age 70 could increase your monthly benefit by as much as 8% annually.

Additionally, increasing your income record can boost your future benefits. Since Social Security calculates benefits based on your highest 35 years of earnings, consider working longer or increasing your income during your peak earning years to maximize your record. 

When making this decision, consider your overall health, family longevity, and financial needs.

Pension Options 

If you or your spouse is eligible for a pension, it’s important to understand your payout options. Most plans offer a choice between a lump sum and monthly income, which guarantees regular payments for life. Each option impacts your financial future.

A lump sum gives flexibility to invest or use the funds, but requires careful management to make it last. Monthly income offers stable, predictable payments but limits access to funds for emergencies or big expenses. 

Your choice affects taxes, income stability, financial security, and estate plans. Retirement advisors, like the team at 1st Choice Financial Services, can help you decide what’s best for your situation.

Consider Part-Time Work 

Will you or your spouse work part-time during retirement? Many retirees take on roles like consulting, freelancing, or seasonal work to earn extra income. This can help cover expenses, reduce early withdrawals from retirement savings, and give investments more time to grow.

Part-time work also provides purpose, keeps skills sharp, and maintains professional connections. Also, it can offer opportunities to explore new industries, pursue hobbies that generate income, or transition gradually into full retirement. Make sure to consider how part-time work might impact your taxes, Social Security benefits, and overall financial plan.

Effective tax planning helps you keep more of your retirement savings by managing how much you owe, both now and in the future. With the right strategies, you can minimize unnecessary taxes and make your money last longer.

Employer-Sponsored and Self-Employed Plans

If you or your spouse has access to a 401(k), 403(b), or 457, aim to contribute enough to receive the full employer match—free money that supports your savings goals. These accounts offer tax-deferred growth and can reduce your current taxable income.

For self-employed individuals, SEP IRAs and Solo 401(k)s offer the ability to save more for retirement than a traditional IRA:

• SEP IRA: Simple to establish and maintain, it allows contributions based on a percentage of your income. Ideal for those with fluctuating or high earnings.
• Solo 401(k): Designed for sole proprietors with no employees other than a spouse. Allows both employee and employer contributions, offering greater savings potential.

Certain retirement accounts—such as employer-sponsored plans, IRAs, and Solo 401(k)s—allow catch-up contributions once you turn 50. Some plans also offer an additional catch-up opportunity for individuals ages 60 to 63, helping to boost savings during your final working years.

Roth IRAs and Backdoor Contributions

Roth IRAs offer significant advantages for retirement planning. Contributions grow tax-free, and withdrawals in retirement are also tax-free, making them a powerful tool for building long-term wealth. Additionally, Roth IRAs are exempt from required minimum distributions (RMDs), allowing you to preserve your savings for as long as you wish. However, income limits can prevent high earners from making direct contributions, which can be a drawback for some individuals.

One potential workaround is a backdoor Roth contribution. This involves funding a traditional IRA and then converting it into a Roth IRA, effectively bypassing the income limits. While this strategy can be incredibly useful, it comes with complexities, such as the pro-rata rule, which can lead to unexpected tax liabilities based on your existing IRA balances. 

Roth Conversions

Unlike backdoor Roth contributions, which are used to add new money to a Roth IRA when income limits prevent direct contributions, Roth conversions involve shifting existing pre-tax savings—like a traditional IRA or 401(k)—into a Roth IRA. This strategy is available to anyone, regardless of income.

Although conversions are taxable in the year they occur, they can offer advantages such as:

• Reducing future RMDs
• Generating tax-free income in retirement
• Helping manage your tax bracket over time
• Hedging against rising future tax rates

Conversions are often most effective in lower-income years, such as after retirement but before Social Security or pension income begins. Spreading the conversion across several years can reduce your tax impact. 

Choosing the right tax strategy requires careful analysis. An independent retirement advisor can help you evaluate your options, run the numbers, and coordinate timing with your overall financial situation. 

Healthcare is one of the biggest variables in retirement planning—and one of the most underestimated. That’s why it’s crucial to plan ahead for both routine care and unexpected medical needs.

Understanding Medicare and Its Limitations

Medicare is a federal health insurance program primarily for individuals aged 65 and older. While Medicare provides significant coverage, it doesn’t pay for everything. Beneficiaries may still be responsible for out-of-pocket costs such as:

• Premiums: Monthly payments for certain parts of Medicare
• Deductibles: The amount you pay before coverage kicks in
• Coinsurance and copayments: A portion of the costs you pay for medical services or prescriptions after meeting your deductible

To fill these coverage gaps, many retirees consider additional options like:

• Medicare Advantage plans: Offer expanded benefits and often include prescription drug coverage.
• Medigap policies: Supplemental plans that help pay for costs like deductibles, copayments, and coinsurance.

It’s also necessary to plan for expenses that Medicare doesn’t typically cover, such as vision, dental, and hearing care. Being aware of these gaps can help you better prepare for your total healthcare needs in retirement.

Long-Term Care: A Critical Consideration

Then there’s long-term care, which includes services like home health assistance, adult day care, and nursing facilities to help individuals with daily activities over an extended period.

According to the U.S. Department of Health and Human Services, 70% of adults turning 65 will require some form of long-term care in their lifetime. However, these services are not typically covered by Medicare, leaving many to face the high costs out of pocket.

Consider exploring long-term care insurance, setting aside designated savings, or working with a retirement advisor to run cost scenarios and evaluate your options. 

Benefits of a Health Savings Account (HSA)

If you have a Health Savings Account (HSA), contributing while working is a smart financial move. Designed for those with high-deductible health plans (HDHPs), HSAs offer a triple tax benefit: 

• Tax-deductible contributions
• Tax-free growth
• Tax-free withdrawals for qualified medical expenses

Plus, unused funds roll over annually, so nothing goes to waste. After age 65, HSAs can even double as a retirement savings tool, with non-medical withdrawals taxed like a traditional IRA. This flexibility and tax efficiency make HSAs a great option for covering healthcare costs and increasing long-term savings.

Relationships, Trust, and Community-Focused Guidance

Working with a local retirement advisor gives you more than just access to financial knowledge—it gives you someone who understands your community, values, and goals.

Local retirement advisors in Central Pennsylvania are uniquely positioned to:

• Understand regional cost-of-living and tax nuances
• Provide consistent, face-to-face service
• Stay connected as your life evolves

At 1st Choice Financial Services, Inc., we’ve built long-term relationships with our clients by offering personalized, one-on-one guidance. Our independent status means we're not tied to any specific products or companies, allowing us to offer advice that is truly in your best interest.

We know that retirement planning in Pennsylvania isn’t one-size-fits-all, so we take the time to understand what matters most to you and your family. From income planning to legacy conversations, having a consistent point of contact helps you feel supported at every stage of retirement.

As an independent advisor firm headquartered in Camp Hill, we provide comprehensive wealth management in Harrisburg, Hershey, Halifax, Lancaster, Lebanon, Enola, Mechanicsburg, and surrounding areas.

We're proud to be part of this community and work with our neighbors to take meaningful steps toward greater financial stability.

Retirement is more than just saving, budgeting, and investing—effective wealth management helps position you for long-term success.

At 1st Choice Financial Services, we bring together all key areas of your financial life: investment strategy, tax planning, retirement income coordination, estate planning, insurance, and succession planning for small business owners. 

Your plan may include:

• A diversified portfolio tailored to your risk tolerance and time horizon
• Tax-efficient strategies to keep more of what you’ve earned
• A balanced approach to drawing income from Social Security, retirement accounts, and other sources

For families, we guide estate and legacy planning to support loved ones, charitable causes, or asset protection. Small business owners in Central Pennsylvania can also benefit from customized succession planning. 

We create comprehensive retirement strategies designed to align with your goals and support the life you’ve worked hard to build.