You'll often hear that it's a bad idea to plan to retire on Social Security alone. Those benefits will only replace about 40% of your pre-retirement paycheck if you're an average earner. And that's only if cuts aren't implemented, which is a possibility.

Most seniors need roughly twice that much income to manage their expenses well, and that's where personal savings come in. Ideally, you'll manage to enter retirement with a nice IRA or 401(k) plan balance.

But just as it's important to build savings for retirement, it's also important to manage your savings wisely. That means coming up with a solid withdrawal strategy before the time comes to start tapping your nest egg.

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Source Fool.com