How Much Retirement Income Do You Need - and How Do You Generate It?

In this episode, Greg Welborn of First Financial Consulting walks through both sides of the retirement income equation: determining how much you may need to support your lifestyle and building a plan for generating that income throughout retirement.

Greg starts with the importance of understanding your current living expenses and thinking carefully about how those expenses could change once you retire. Some costs may disappear, while others—such as travel, hobbies, or bucket-list goals—may increase. He also discusses why inflation needs to be part of the calculation, particularly when planning for a retirement that could last 20, 30, or more years.

From there, the conversation turns to where retirement income may come from. Social Security, pensions, and other regular income sources can provide part of the picture, but each may come with decisions of its own. Pension elections, Social Security claiming strategies, taxes, and other factors can all affect how much money is actually available to support your lifestyle.

Greg also explains why it is completely normal for Social Security, pensions, and other guaranteed income sources not to cover every retirement expense. The remaining amount may need to come from your investment portfolio, making your withdrawal rate an important part of the planning process.

Finally, Greg discusses the role investments play in a retirement income strategy. A portfolio may need to accomplish two things at once: provide the additional income needed today while continuing to grow enough to help keep pace with inflation over time. That also means a retirement plan shouldn’t simply be created once and forgotten. Your investments, spending, income needs, and overall plan should be monitored as circumstances change.

Topics discussed in this episode include:

• How to estimate your retirement income needs
• Current expenses versus retirement expenses
• The long-term impact of inflation
• Planning for a retirement that could last decades
• Social Security and pension income
• Understanding different pension options
• Taxes on retirement income and withdrawals
• Using investment assets to fill an income gap
• Evaluating your portfolio withdrawal rate
• Structuring investments for income and long-term growth
• Why retirement income planning requires ongoing monitoring

Learn more about First Financial Consulting:
https://firstfinancial.is/retirement-income-diversification/

The information discussed in this episode is intended for educational purposes only and should not be considered individualized financial, investment, tax, or legal advice. Everyone’s financial situation is different, and the strategies discussed may not be appropriate for every investor.

First Financial Consulting is an independent, fee-only fiduciary financial advisory firm providing comprehensive financial planning and investment management services.

Learn more about First Financial Consulting:
https://firstfinancial.is/