The Market, My Pension, DROP, 457(b) — How to Make Sense of It All When You’re Close to Retirement

After more than two decades of hard work, you can finally see it - the finish line. Retirement is right around the corner. You’ve spent your career serving others, showing up for your crew, your city, your community. You’ve given your time, your energy, and maybe even a few sore knees along the way.

So now that you’re nearing retirement, it’s completely normal to feel a little nervous about what comes next - especially when the market’s been bouncing around like a rookie trying to back up the engine.

You might even be tempted to pull everything out of the market and toss it into a “guaranteed” fund just to keep your money safe. But before you make any big moves, take a deep breath. Let’s slow things down, look at your options, and build a plan that actually makes sense for you.

1. Let’s Talk — You Don’t Have to Figure This Out Alone

I know this stage can feel overwhelming. Between the pension paperwork, DROP decisions, and those 457(b) balances that rise and fall like Lake Erie in spring, it’s a lot. That’s where I come in.

My job isn’t just about numbers and charts, it’s about helping you see the full picture. Together, we’ll look at your pension, DROP, deferred comp, and other savings to map out how they all work together. I’ll run projections, talk through your options in plain English, and help you understand the “why” behind the numbers.

And when the market gets bumpy (because it always does), I’ll be the calm voice reminding you that short-term swings don’t derail long-term plans. You’ve handled much tougher situations, so we just need a strategy that works for your next chapter.

2. Your Pension: The Backbone of Retirement Income

You’ve earned your pension - it’s your steady paycheck for the years ahead. But before you clock out for the last time, there are a few important decisions to make.

If you’re entering DROP, remember: you’re locking in a portion of your pension. That’s great for stability, but it also means you’ll want to think carefully about how long to stay in DROP and what happens next once you leave.

And don’t overlook survivor options. Choosing how much your spouse will receive if you pass away isn’t exactly dinner-table conversation, but it matters. The right choice can make sure your family is financially secure long after you’ve traded your turnout gear for a fishing pole.

3. Social Security: Timing Is Everything (If You Paid Into It)

If you’ve paid into Social Security through the years, this can be another key piece of your retirement puzzle. But like everything else, when you decide to start taking it can make a big difference in how much you (and possibly your spouse) receive.

Starting early means smaller checks for life, while waiting can boost your monthly income. And if you’re married, that decision doesn’t just affect you, it can also impact your spouse’s survivor benefits down the road.

So, if you’re the higher earner, it might make sense to delay claiming a bit longer. That way, if something happens to you first, your spouse may be eligible for a higher survivor benefit.

If you plan to keep working while collecting, make sure you understand how income limits and taxes could affect your payments. The rules can be tricky, but knowing them ahead of time helps you make the most of what you’ve earned.

4. Health Insurance: Don’t Let This One Sneak Up on You

If you’re retiring before 65, Medicare isn’t in the picture yet and healthcare costs can be one of the biggest surprises in retirement. Make sure you have a plan for that in-between time.

Whether it’s coverage through your spouse, a private plan, or a retiree option, we’ll look at what fits best for your situation. Because nothing says “retirement buzzkill” like realizing your biggest monthly expense isn’t golf or travel - it’s health insurance.

5. Deferred Comp (457(b)): Not Just a Market Rollercoaster

Your deferred comp plan can be an amazing tool—but it can also cause a little heartburn when the market dips. If you’ve looked at your account lately and muttered a few choice words, you’re not alone.

Here’s the key: your deferred comp isn’t meant to be your only source of income. You’ve got your pension and possibly DROP as the guaranteed foundation. Your 457(b) is the flexible piece, it’s the one that helps your money grow over time.

Ask yourself: “When do I actually plan to use this money?” If it’s not right away, you’ve got time for the market to rebound. If it is for near-term spending, we can look at shifting part of it to more conservative options. Either way, the goal isn’t to react out of fear, it’s to make thoughtful moves based on your timeline and comfort level.

6. Don’t Lose Sight of the Big Picture

Retirement planning isn’t about chasing returns or panicking over every market dip, it’s about seeing how all the pieces fit together. Your pension, DROP, and deferred comp each play a role: one provides stability, another flexibility, and together, they create balance.

When we zoom out, your retirement doesn’t hinge on one account - it’s the combination of everything you’ve built. My role is to help you align those parts so they work together, giving you clarity and confidence for the road ahead.

A Final Thought

Retirement planning can feel like trying to solve a Rubik’s Cube blindfolded - just when you think you’ve got it, something shifts. But remember, as Abraham Lincoln (and probably every financial advisor ever) would say:

“It’s not the years in your life that count - it’s the life in your years.”

You’ve spent your career protecting others, serving your community, and putting in the work. Now it’s time to make sure your money does the same for you. Let’s build a plan that helps you retire with confidence and maybe a little excitement too.

Let’s connect.

Shannon