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Your Income in Retirement
As you transition into retirement, your income will come from a combination of sources including your 401(k)/RSP, any pension benefits, and Social Security. Understanding how these pieces work together can help you make confident decisions about when and how to use your savings.
401(k)/Retirement Savings Plan (RSP)
The 401(k)/RSP reflects Atmos Energy’s commitment to helping you prepare for the future. It includes the contributions you’ve made, the matching contributions from Atmos Energy, the Fixed Annual Company Contribution (if applicable), and any earnings you’ve made from investing your money. As you approach retirement, this account becomes an important source of income and requires a few key decisions.
Approximately three to four weeks after you retire from Atmos Energy, T. Rowe Price will mail you a packet outlining your distribution options. At that point, you can decide whether to keep your funds in the plan, move them to another account, or begin taking withdrawals. If you choose to keep your account with T. Rowe Price, a $9 quarterly recordkeeping fee will apply once you are no longer an active employee.
You have flexibility in how and when you use your savings, but these decisions can have long-term financial and tax implications. Taking time to review your options and consulting with a financial or tax advisor can help you choose an approach that aligns with your retirement goals.
You can continue to manage your account at any time by logging in to rps.troweprice.com, where you can view your balance, update your investments, and make changes to your personal information. If you need assistance, T. Rowe Price representatives are available at 800-922-9945.
Review the Retirement Savings Plan SPD for full plan details.
Pension Account Plan (PAP)
The PAP is applicable to you only if you began employment on or before September 30, 2010, and elected to continue participation in the PAP as of October 1, 2010, or if you were employed in the Mississippi Division covered under a collective bargaining agreement before July 14, 2014.
Once you submit your retirement application, you’ll receive a pension election packet within a few weeks. This packet will outline your estimated benefit and the payment options available to you. You will need to make a one-time election for how your pension will be paid.
Before you make the decision to retire, it’s strongly recommended that you consult a tax and/or financial advisor about the form of pension benefit you are electing. By law, the lump sum and monthly annuity elections are one-time elections and cannot be changed after the payments start.
- Defer Your Pension. You can delay starting your pension (no later than age 73) if you don’t need the income immediately or want to coordinate timing with other income sources. Your balance will continue to grow with an annual interest credit (currently 4.69%, subject to change). This may result in a higher future payment, but delays income.
- Monthly Annuity Payments. You receive predictable monthly income for life. You’ll choose one of the following:
- Joint & Survivor (J&S). This option provides lifetime monthly income to you and continues payments to your spouse after your death. You can elect a survivor percentage of 50%, 66⅔%, 75%, or 100%, depending on how much ongoing income protection you want to provide. In general, the higher the survivor percentage you choose, the lower your monthly payment will be during your lifetime.
- Single Life Annuity (SLA). This option provides monthly income for your lifetime only, with no payments continuing after your death. Because there is no survivor benefit, this option typically provides the highest monthly payment.
- 5- or 10-Year Certain and Life. This option provides monthly income for your lifetime, with a guarantee that payments will continue for at least five or ten years. If you pass away before the guaranteed period ends, the remaining payments are made to your spouse or designated beneficiary. This option offers a balance between lifetime income and some level of beneficiary protection.
- Lump Sum Payment. You can take your pension as a one-time payment, either by rolling it over into an IRA (which is not taxed at the time of transfer) or by receiving it as a cash payment (which is taxable immediately). This option gives you full control and flexibility over how the money is managed and used, but it also means you are responsible for investing it and ensuring it lasts throughout your retirement.
Review the Pension Account Plan SPD for full details about all of the PAP features.
If you are a participant in the Pension Plan, the Retirement Modeler can help you plan and save for retirement with customized scenarios. The tool can:
- Model scenarios by age or by specific retirement dates and compare up to three age-based scenarios side-by-side.
- Model scenarios by specific retirement dates.
- Present your retirement income in a graph format that shows how much you’ll have each year of retirement and the sources that make up the amounts.
- Include your and your spouse’s additional sources of retirement savings such as IRAs, HSAs, annuities, etc. in the financial modeling.
- Import your 401(k)/RSP balance into the tool on a monthly basis (but you can also adjust the balance as needed).
- Calculate an estimated Social Security benefit for you and/or your spouse starting at normal retirement age or an earlier age. Alternatively, you can add an estimated amount that Social Security provides to you.
- Provide your pension account balance as of the end of the prior year.
Beneficiaries
Having beneficiaries on file for all of your benefit plans is critical. In the event of your death, you want to be sure that your loved ones can access benefits quickly and easily. Keeping your beneficiaries up to date:
- Ensures your benefits go to the right person(s): Without a named or updated beneficiary, your benefits may not go to the person or entity you would have chosen.
- Takes stress off your loved ones: Having clear beneficiary designations helps your family get access to funds quickly when they may need them most.
- Helps avoid delays and legal hassles: Without a named beneficiary on file, distributions may be held up in court and payments will be delayed.
Review and update your beneficiaries today. Click here for instructions.
Social Security
Social Security is an important part of your retirement income, but when you start benefits matters. You can begin receiving Social Security as early as age 62 or delay until age 70. Starting earlier means you’ll receive smaller monthly payments, while delaying beyond your full retirement age increases your benefit through additional credits.
Learn more by contacting SSA at 800-772-1213 or going to ssa.gov.
The table below shows your full retirement age based on the year you were born.
Deciding when to start Social Security isn’t just about age—it should align with your overall retirement income strategy.
Your decision should be coordinated with your 401(k)/RSP, pension, and other income sources.
If you are enrolled in a High Deductible Health Plan (HDHP), timing matters even more. If you apply for Social Security benefits before age 65, you will automatically be enrolled in Medicare Part A. This makes you ineligible to contribute to a Health Savings Account (HSA), including any contributions from Atmos Energy. Because of this, it’s important to understand how claiming Social Security may affect your healthcare and tax strategy. Consider speaking with a tax or financial advisor before making a decision.
As you approach retirement, take these steps to make informed decisions about Social Security: