saving extra income in retirement?

[albireo13]

I've been running the numbers and if all goes well, and we keep to a reasonable budget, our income in full retirement will exceed our expenses by a bit.
This income would come from combined pensions and SS for my wife and I so, we are talking about after FRA.   
We have most of our nest egg in tax deferred accounts so, the RMDs will also be hitting us after 70.

   Anyway, we could just put any excess into CDs or taxable funds .... or maybe Roth IRAs?   I was just wondering what other folks do in this situation?

Thx,
Rob

[bacchi]

Most retirement vehicles require earned income. Can you use an HSA? No RMD, no earned income requirement, and you'll almost certainly use it when you get older.

[terran]

You won't be able to contribute to a Roth IRA from pension or SS income (earned income only), but this may indicate that you should be doing traditional to Roth conversions now. Try to model expected marginal tax rates once you start collection pension and SS as that will indicate what bracket you should convert to now. You'll need to consider ACA subsidies if applicable now though.

[albireo13]

Thanks.  I forgot that I need earned income for the retirement investment vehicles.
The HSA is a good thought.  I'll look into that.

I haven't retired yet ... about 6 months away.  My wife will work another 3+ yrs so, I will be covered under her health plan into Medicare land.
I plan to start the Roth conversions right away.  Have to review the tax brackets etc.

[MKinVA]

Also, consider strategic social security payout. My plan right now is to wait to take social security as long as possible to allow my benefit to grow the 8 percent per year over regular retirement age, basically 67 for me. I am 59 and already retired; husband still working. I will spend down my retirement accounts in between minimizing the RMD later and, the biggie, social security is tax free in many states. That 40 grand tax free is worth missed interest on the spend down money. My pension pays out monthly bills easily so I don't really need the extra monthly social security in the forseeable future. My cash savings (which I add to each month) I use for large purchases; travel, home projects, real estate taxes.