A practical way to think about retirement income

For most of your working life, the goal is accumulation: contribute consistently and let time and growth do the work. Retirement income planning flips the question, instead of "how much can I save," it becomes "how do I convert savings into income that can reasonably last," while accounting for market swings, inflation, health care costs, and taxes.

• Guaranteed income sources, such as Social Security and any pension
• Portfolio withdrawals from taxable, tax-deferred, and Roth-style accounts
• Any insurance-based income tools you hold or are considering
• Health care and long-term care funding
• Taxes, both current and how they may change over a multi-decade retirement

• What does my benefit look like at 62, full retirement age, and 70?
• How does my spouse's claiming strategy interact with mine?
• Am I still working, and could that affect benefits before full retirement age?

The order in which you draw from taxable, tax-deferred, and Roth accounts can affect how much tax you pay over time and how required minimum distributions interact with other income. This can vary significantly depending on your account mix, so it's worth reviewing with your tax professional rather than following a generic rule of thumb.

• What happens to the plan if markets decline significantly in the first few years of retirement?
• How would a long-term care need affect the plan?
• Is there a surviving-spouse income plan in place?

• List every income source and its expected start date
• Estimate essential versus discretionary monthly expenses
• Identify which accounts you'd draw from first, second, and third
• Review how the plan holds up under a market downturn in year one or two of retirement