Ask most clients how much they need to retire, and they’ll give you a number. Ask how long their money needs to last or how they’ll turn that savings into reliable income, and the answers become far less certain.
That disconnect isn’t unusual. Retirement income planning often gets delayed until a triggering event: a retirement date, a market downturn or a client’s worry about outliving assets. By then, many of the effective planning strategies may be harder to implement or offer less flexibility.
We talk a lot about saving for retirement, but not enough about converting that savings into income. When income planning is treated as a final step instead of a starting point, clients may be left more exposed to risks that are difficult to address later.
One of the biggest obstacles to income planning is the idea that assets are interchangeable: Money is money, regardless of whether it’s allocated for long-term growth or near-term income needs.
When portfolios are viewed as a single amount, clients may overlook key risks that could threaten retirement success: inflation, interest rates, sequence of returns and longevity. These risks are well understood, but when income planning is delayed, they can compound when clients are least able to recover.
Shifting the planning conversation from “How much do I need?” to “How long does this need to last?” can help reframe retirement planning around income, not just accumulation. That shift can be especially valuable earlier in the planning timeline.
Another concept that clients may overlook is that diversification isn’t just for building wealth. It can support income throughout a lifetime and incorporate multiple sources, including Social Security, market-based assets and annuities.
Building a mix of income sources that respond differently to market conditions can help support more consistent outcomes over a long retirement. But it requires intentional planning and earlier conversations about how income will be generated, not just how assets will grow.
Starting income conversations earlier during peak earning years reframes retirement income as an ongoing process and can allow clients time to build strategies that evolve over time with changes in the markets, longevity and goals.
When income becomes part of the foundation, rather than an afterthought, clients may be better positioned to navigate the transition to retirement with greater confidence and more flexibility.
Because a client’s reliance on secure income may increase as they age, seeking out additional ways to sustain their income for life is an important focus for your planning discussions.
This article is produced in partnership with Symetra
Disclosures
SYM-1364 7/26
Symetra Life Insurance Company, 777 108th Ave NE, Suite 1200, Bellevue, WA 98004.
Neither Symetra Life Insurance Company nor its employees provide investment, tax, or legal advice or endorse any particular method of investing. Individuals should seek appropriate professional advice before making savings and investing decisions.
Advisor recruiting climbed to its strongest pace in nearly two years, while CEO Richard Steinmeier said the firm has "cleared the decks" for bigger institutional deals.
The combinations involving Red Oak and AdvisorRankings illustrate how AI is reshaping both wealth firm operations and wealthtech platforms' business models.
New 5-in-1 onboarding tool aims to cut subscription paperwork as advisor demand for private markets accelerates
Connecting unique offerings with a specific client niche is a sure path to advisor satisfaction and success – but it all has to start with an intentional strategy.
The deal marks the independent wealth management firm's first footprint in Alabama, expanding its national RIA acquisition strategy.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income