You might call it “retirement income planning,” “liquidity needs,” or perhaps “withdrawal rate.” Whatever the term, it all refers to the same thing: the cash you spend in retirement, regardless of its source — dividends, fixed-income investments, or withdrawals from retirement plans.
The Alliance for Lifetime Income’s “2024 Protected Retirement Income and Planning Study” revealed only 27 percent of investors recall their financial advisers discussing secure income, despite 62 percent of advisers reporting that they do. Moreover, 54 percent of survey respondents aged 61 to 65 mistakenly believed their IRA could provide guaranteed income, and 53 percent thought the same about their 401(k). In reality, Social Security, pensions, and annuities are the primary sources of protected income. With pensions relatively rare and Social Security designed to cover only about 40 percent of pre-retirement income, retirees often face a significant gap between their income and expenses.
William G. Lako, Jr., CFP®, is a principal at Henssler Financial and a co-host on “Money Talks” — your trusted resource for your money, your future, your life — airing Saturdays at 10 a.m. on AM 920 The Answer. Mr. Lako is a CERTIFIED FINANCIAL PLANNER™ professional.
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Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.