Identify Your Retirement Income Needs

Is Average Retirement Income Enough For You?

You may be tempted to look at average retirement income figures to determine what you may need each year in retirement. It seems like a reasonable starting point, but average retirement income data can vary greatly based on many factors—like where you live, age, healthcare costs and retirement lifestyle.

Instead of basing your retirement income planning around medians or averages that represent other people’s needs, we recommend taking stock of your own personal situation. If you’re still working, anticipate whether you’ll need more or less income post-retirement. If you’re already retired, calculate your monthly expenses and to see if you need to make any adjustments to have a comfortable retirement income.

The Definitive Guide to Retirement Income can help you determine your monthly retirement income and learn new retirement income strategies. If you prefer more guidance, you can have a conversation with one of our licensed representatives. We’ll take the time to understand your unique situation while answering your questions about various income strategies—plus much more.

Tailoring Your Investments to Your Retirement Income Needs

During their working years, people may invest for many different reasons: to help fund a comfortable retirement, to grow their portfolio over time or to leave a legacy behind. In retirement, you’ll likely need to review your investments to make sure they’re still working toward your goals and providing the retirement income you need to live on. Some investors turn to income-producing investments to build their wealth—but each comes with its own challenges:

High Dividend Stocks:

These are stocks that pay regular dividends to attract investors. If you need retirement income, they could be a good option. However, investing too heavily in these stocks can leave you overexposed to certain sectors.

Bonds:

Bonds may be a viable investment option since many provide consistent and relatively predictable interest payments. Historically, though, they have lower returns than stocks over the long-term.

Annuities:

Many retirees are attracted to annuities because they tout safety and lifetime income—but they come with trade-offs. You’ll need to consider if the typically high fees or tying up your money in an illiquid annuity contract is worth it.

You have many choices when building your retirement income plan, and not every option will be in your best interest. Determining the right wealth-building strategy for you may feel overwhelming so let us help you ease those anxieties.

Generating Retirement Income

In addition to your income-generating investments, consider non-investment income sources as well. This includes your salary if you choose to continue working, your pension if you’re lucky enough to have one, social security benefits and real estate.

Your retirement income plan should cover all of your options and their potential impact. To make this process simpler, we’ve included a worksheet in The Definitive Guide to Retirement Income to help you put it all together. Use it to document your retirement expenses and all income sources in one place, so you can determine what you need from your portfolio.

It can be difficult to determine which retirement income strategies are right for you, so consider consulting a professional. An adviser can help you build a personalized strategy and a comfortable retirement income plan.