Retirement Income Strategies For Every Age

Being old is relative. Back in 1935, a 65-year-old would live on average another 12 years. Today, the Society of Actuaries says that the average man at 65 can expect to live another 21 1/2 years, and the average woman another 23 or more years.9 If members of your family have lived long lives, plan for the chance that your retirement savings will need to stretch 30 years or more. With today’s advances in medical care, people are just living longer.

Plus, individuals are spending their retirement years more active than ever.10 We want to live a full life and maintain a standard of living at least close to what we enjoyed before retirement. With inflation and increasing health care costs, that means we may need more money in our retirement to enjoy the same lifestyle we do today.

Keep in mind that the money you have saved and invested for retirement should be working for you by earning interest until you withdraw it. Part of the solution for spending more years in retirement and not outliving your savings is deciding how to handle your retirement money.

This means having a continual investment strategy throughout your lifetime that will grow your savings while protecting your nest egg against market downturns. Lastly, you may want to have a withdrawal strategy in place that could help you pay less tax on money you take out of your retirement account and continue to grow the money you leave in.

Touring the corners of the globe. Basking near a campfire, surrounded by grandchildren. Learning French . . . painting watercolor landscapes . . . handcrafting furniture . . . serving up meals in a soup kitchen . . . knitting baby hats.

When you think about retirement, what do you picture? Whatever it is, one thing is certain: you’ll need money to fund those big—and not-so-big—plans.

You might stop working at a certain age, but the daily demands of life won’t stop coming. Mortgage payments. Car repairs. Cell phone bills. Medical expenses. And those are just a few of the basics. You’ll still want to enjoy your favorite restaurants, escape on weekend getaways, lavish those adorable grandkids with gifts, maybe take a cruise or six . . . you get the idea.

If you may be getting confused thinking about how to afford your retirement, take a deep breath. Planning for retirement income doesn’t have to be overwhelming. Understanding the basic principles of financial and retirement income planning and financial planning basics can make your golden years much clearer and less complicated.

Relax. You’ve got this. Think of all the things you’re already doing to provide for your family’s financial future. Working hard, saving, budgeting, investing—you know how to get things done. And we’re here to help you with the retirement income part.

Tim and Kari are in their early 50s and looking forward to enjoying a retirement that’s roughly 10+ years away. With good jobs, they both saved what they could. However, with two children still at home, another 16 years on the mortgage, lingering student loans, and the rising cost of living, they’re challenged with paying down debt while saving enough for their future.

Kari went back to work, but during her unemployment, they depleted their savings account, accrued substantial interest on student loans, and have fallen significantly short of their retirement savings goal. Knowing that they’ll now have to work longer to pay off debt and to replenish their emergency fund, the couple has decided to downsize, allowing them to establish an aggressive budget to contribute as much as possible toward their employer sponsored and individual retirement accounts. With retirement on the horizon, they’re working with a licensed professional to help them build a balanced portfolio that’ll help them get that much closer to their goals.

Given the economic circumstances many Americans have lived through over the past decade, it’s helpful to know that there are ways to take advantage of guaranteed retirement income benefits, regardless of where the economy heads in the future. This section will give you facts and insight to help you make wiser, sounder choices about your retirement income. The more you know, the better you can plan.

Check out the following sections to learn more about guaranteed sources for your retirement income:

In her late 50s, Kathy planned on retiring within the next four to five years. Having experienced minor financial setbacks, she was less worried about meeting everyday expenses and more concerned about maintaining her good health while saving enough money to enjoy a comfortable retirement. After decades of diligently saving, Kathy built up her retirement savings and was sitting on nearly $1 million in municipal bonds.

In an effort to save as much as possible, Kathy plans on working part-time while in retirement as a consultant in her profession. This will allow her to supplement her income, contribute to a Roth IRA, and wait until she’s full retirement age, age 70, before drawing on her Social Security.

Congratulations on establishing a retirement income plan you can feel confident about. Here’s to your golden years! May you be able to live the retirement you always imagined—and have a solid retirement income strategy to pay for it.

Outliving your funds, leaving a legacy, and dealing with market fluctuations are all reasons why it’s important to have a retirement plan you feel confident about. Life can throw in unexpected events, but with careful planning, you may be able to put yourself in a better position for your golden years.

At this point in your life you’ve read and worked through the previous steps and have an idea of how much income you’ll need to fund your retirement. You’ve read about different types of retirement income sources, you’ve weighed your appetite for risk, and you’ve thought about inflation, your health, and other factors that might come up. So, what’s next?

Before retiring, Edward and Carol remained relatively optimistic about their future. They paid off their home, diligently contributed to their retirement accounts, and had affordable health care and life insurance through work. With a substantial nest egg, they both retired at age 63.

With both of them now drawing Social Security, Edward and Carol realize that what they saved may not have been enough and they could outlive their money. With more going out than coming in, they’re not feeling confident about their retirement and will need to look at additional sources to supplement their income. For this reason, Edward and Carol moved some of their low interest savings accounts into annuities, and have been able to create a more reliable income stream that’s guaranteed for the rest of their lives.