5 Smart Considerations For Your Retirement Income

September 18, 2025

If you’re approaching retirement—or you’ve already entered this exciting stage of life—your focus naturally shifts from building wealth to protecting it. After years of saving and working hard, you deserve to enjoy retirement without the constant stress of whether your money will last. That means creating a plan that helps your income stretch for 20, 30, or even more years.

Here are five important strategies to keep in mind:

1. Plan for health care costs

Health care is often one of the biggest and most unpredictable expenses in retirement. Longer life spans, rising medical costs, and the possibility of needing long-term care make it essential to plan ahead.

Studies show that nearly 70% of people over age 65 will need some type of long-term care—whether at home, in assisted living, or in a nursing facility. These costs can be staggering, with nursing home care averaging well into six figures annually.

A few ways to prepare:

●     Set aside funds specifically for health and long-term care expenses.

●     Explore long-term care insurance if it makes sense for your age and financial situation. Buying earlier typically means lower premiums.

●     Use a Health Savings Account (HSA) if you’re still working and eligible. HSAs offer unique tax advantages and can be a valuable resource in retirement.

2. Expect to live longer

Today’s retirees are healthier and more active than ever. Many 65-year-olds can expect to live well into their 80s or 90s. That’s wonderful news—but it also means your retirement income needs to last decades, not just a few years.

Social Security provides a foundation, but the average monthly benefit—around $2,000—likely won’t cover everything. To help fill the gap, some retirees look at annuities or other guaranteed income products that provide steady payments for life. These can be especially useful for covering essential expenses such as housing, food, and insurance.

3. Be prepared for inflation

Inflation is often called the “silent risk” of retirement. Even modest inflation gradually erodes your purchasing power, making everyday expenses more expensive as the years go by.

A retirement income plan should include investments that can help keep pace with inflation. That might mean balancing your portfolio with growth-oriented investments like stocks, real estate, or inflation-protected bonds, while also keeping an eye on risk.

Some sources of retirement income, such as Social Security, may adjust with inflation, but most personal savings do not—so it’s important to plan for rising costs over time.

4. Balance risk and growth in your investments

It’s tempting to play it safe with very conservative investments once you retire, but being too cautious can actually put your future at risk. If your portfolio doesn’t grow enough, inflation may erode its value, and your savings could run out too soon.

On the other hand, taking on too much risk could leave you vulnerable during market downturns. The key is balance:

●     Diversify across stocks, bonds, and short-term investments.

●     Match your asset mix to your risk tolerance and time horizon.

●     Review and adjust regularly to ensure your portfolio is still aligned with your goals.

A thoughtful mix of growth and safety gives your money the best chance to last throughout retirement.

5. Watch your withdrawal rate

One of the biggest risks to retirement income is spending too much too soon. Withdrawing savings too aggressively can shorten the lifespan of your portfolio, leaving you financially vulnerable later in life.

Many financial professionals suggest a conservative withdrawal strategy, such as starting with 4% to 5% of your savings in the first year and adjusting annually for inflation. The goal is to provide steady income while protecting your nest egg for the long haul.

Creating a structured withdrawal plan—possibly in combination with guaranteed income options—can help ensure your savings last 20 to 30 years or more.

The bottom line

Retirement should be about enjoying the rewards of your hard work, not worrying about whether your money will last. By planning for health care, preparing for a long life, keeping inflation in mind, investing wisely, and managing withdrawals carefully, you can create a retirement income plan that gives you confidence and peace of mind.

Sources:

https://www.fidelity.com/viewpoints/retirement/protect-your-retirement-income

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.