Will I run out of money in retirement?

The risk is real, but it can be managed. Realistic assumptions about spending, inflation, returns, and longevity, plus a plan that's reviewed every year, make running out far less likely.

What is a safe withdrawal rate?

Rules of thumb like 4% are a starting point, not a plan. The right withdrawal rate depends on your age, other income, investment mix, and flexibility to adjust in a bad market year.

Should I buy an annuity?

Sometimes. An annuity can provide lifetime income, but it comes with costs and limits on access to your money. Whether one fits depends on your full situation. We'll show you the trade-offs either way.

When do required minimum distributions start?

RMDs start at 73 for people born from 1951 to 1959, and at 75 for people born in 1960 or later. Planning for them years in advance can help manage the taxes.

How often is the plan updated?

At least once a year, and whenever something significant changes: a retirement date, a health event, an inheritance, or a market shift.

Retirement income planning

Retirement Income Planning: Turn Your Savings Into a Paycheck

You spent decades saving. Now the question is how to spend it: how much, from which accounts, and in what order, so it lasts as long as you do. A written retirement income plan answers those questions with your actual numbers.

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What is retirement income planning?

Retirement income planning is the process of turning your savings, Social Security, and any pensions into a reliable income that lasts for life. A good plan sets a sustainable spending level, picks a Social Security claiming strategy, decides which accounts to withdraw from first to manage taxes, and prepares for healthcare costs and a surviving spouse.

Saving and spending are different jobs

Working years

Accumulation

save, invest, let it grow

Retirement

Distribution

a monthly paycheck, managed taxes, protection from bad timing

While you're working, the goal is simple: put money away and let it grow. In retirement, everything changes. You need a paycheck every month, markets will still rise and fall, taxes depend on which account the money comes from, and the plan has to work whether you live to 80 or 100. That's why Paul starts with income, not investments. Once you know what you need each month and where it will come from, the investment decisions get much clearer.

What's in your written plan

Your spending picture

what you spend today, what will change in retirement, and a sustainable annual withdrawal.

Your income sources

Social Security, pensions, annuities, and savings, mapped year by year.

Your Social Security strategy

the claiming age for you and your spouse, and the reasoning behind it.

Your withdrawal order

which accounts to draw from first (taxable, tax-deferred, or Roth) to help manage taxes over your lifetime.

Your RMD and tax timeline

when required minimum distributions start, and whether Roth conversions in lower-income years could help.

Your investment approach

money you'll need soon kept steadier, and money for later invested for growth.

Your safety net

Medicare, long-term care, and income for a surviving spouse.

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Five common retirement income mistakes

1
No written plan. Without one, it's hard to know whether you can retire, how much you can spend, or how long your money will last.
2
Claiming Social Security without a strategy. Filing early by default, or not coordinating with a spouse, can cost tens of thousands of dollars over a lifetime.
3
Retiring before the numbers work. Working even a few more years can mean more saved, a larger Social Security check, and fewer years to fund.
4
Ignoring healthcare and long-term care. Medicare doesn't cover everything, and a long-term care need can strain a plan, and a surviving spouse.
5
Taking the same investment risk as when you were 45. A large market drop just as withdrawals begin can do lasting damage. Risk should match the income you need.

Key retirement ages

59½
Withdrawals from IRAs and most retirement plans no longer face the 10% early-withdrawal penalty.
62
Earliest age to claim Social Security, at a permanently reduced amount.
65
Medicare eligibility. Sign up on time to avoid lifelong penalties.
67
Full Social Security retirement age for anyone born in 1960 or later.
70
Social Security stops growing. No reason to wait longer.
73 or 75
Required minimum distributions begin: 73 if born 1951–1959, 75 if born 1960 or later.

Who this is for

Most of the people Paul helps are within 10 years of retirement or recently retired, with between $500,000 and $2 million saved across 401(k)s, IRAs, and other accounts. Many have never worked with an advisor and have never had a plan for drawing their savings down.

Straight answers

Frequently asked questions

It depends on what you'll spend, what Social Security and any pension will cover, and how many years your savings need to last. A written plan compares your expected spending with your expected income, so you know where the gap is, if there is one.

LPL Financial and its representatives do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your specific situation.