When people think about retirement, they often focus on building a nest egg. But the real question isn’t just how much you’ve saved — it’s how you’ll turn that savings into a steady paycheck you can count on for life.
Retirement income strategies is about creating certainty. It’s about balancing guarantees with flexibility, so you can enjoy your retirement years without worrying about running out of money.
There are several pillars of retirement income, and each plays a role in building a reliable plan:
Annuities (Income Guarantees)
Provide predictable monthly income, no matter how long you live.
Can start right away (immediate annuities) or in the future (deferred annuities).
Options include fixed, indexed, or variable annuities, depending on your needs for safety, growth, or flexibility.
Social Security
For most Americans, Social Security is a foundation of retirement income.
Timing matters: claiming early, at full retirement age, or delaying until 70 can dramatically change your lifetime benefits.
Pensions
For those who have them, pensions are another guaranteed income stream.
Choices around survivor benefits or lump-sums can affect both your retirement lifestyle and your spouse’s protection.
At its core, retirement income planning is about replacing your paycheck with sources you can rely on — combining guaranteed income from annuities, Social Security, and pensions with other assets you’ve built along the way.
Retirement income isn’t just about collecting checks. With the right strategies, you can smooth out risks, protect your spouse, and keep more of what you’ve earned.
1. Sequence of Returns Risk
In the early years of retirement, market downturns can have an outsized effect if you’re drawing from investments.
Guaranteed income streams from annuities or pensions act as a buffer, so you don’t have to sell assets in a down market.
This helps preserve your portfolio and creates stability.
2. Coordinating Social Security and Pensions
Timing Social Security benefits can add tens of thousands of dollars over your lifetime.
Pension decisions (lump sum vs. annuity, survivor benefits) should be coordinated with annuities and insurance so spouses are protected.
A pension maximization strategy can create both higher income today and security for tomorrow.
3. Navigating Required Minimum Distributions (RMDs)
At age 73, most retirement accounts require withdrawals, whether you need the income or not.
Looking ahead with annuities, Roth conversions, or cash value life insurance can help manage the tax impact.
Proper strategies can help keep you from being forced into higher tax brackets later.
4. Tax Diversification
Retirement income can come from three “buckets”: pre-tax (401(k), IRA), tax-free (Roth, life insurance cash value), and after-tax (brokerage accounts).
Balancing these sources helps control taxes each year.
This flexibility allows you to adapt to changing tax laws and personal needs.
5. Protecting a Surviving Spouse
Many households see income drop when one spouse passes — Social Security, pensions, and benefits can shrink dramatically.
Layering life insurance or annuities ensures income stability for the surviving spouse.
This reduces the risk of one partner facing financial strain alone.
Retirement income planning goes beyond saving money. It’s about creating a strategy that protects against risks, reduces taxes, and ensures both you and your spouse can live with confidence.
Retirement income isn’t just about having a nest egg — it’s about turning savings into a steady paycheck you can count on, no matter what the markets do or how long you live.
The right plan balances guarantees like annuities, pensions, and Social Security with flexibility from investments and tax-smart strategies. That combination creates stability, reduces stress, and helps protect both you and your spouse for the long haul.
At the end of the day, retirement isn’t just about money — it’s about peace of mind, knowing you have the income you need to live the life you’ve worked so hard for.
All guarantees associated with annuity contracts are based on the claims-paying ability of the issuing insurance company.
Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.