Retirement Income Strategies to Review at the Start of Each Year
The start of a new year is the perfect time to evaluate your retirement income strategy. Even small changes in expenses, healthcare needs, or market conditions can affect how your income supports your lifestyle. Reviewing your strategy annually ensures that your plan remains aligned with your goals, provides stability, and supports long-term financial security.
Working with a retirement planner can help you analyze your income sources, make necessary adjustments, and create a coordinated plan that fits your lifestyle and priorities.
1. Assess Your Current Income Sources
Begin by reviewing all sources of retirement income, including:
Social Security or other government benefits
Pensions or annuities
Investment accounts or retirement savings
Rental or other passive income
Understanding the reliability and sustainability of each income source is critical. A retirement planner can help you evaluate whether your income streams are sufficient to cover expenses and support your desired lifestyle.
2. Review Withdrawal Strategies
How and when you withdraw funds from retirement accounts can significantly impact the longevity of your savings. Annual reviews allow you to:
Adjust withdrawal amounts based on current expenses
Consider the sequence of withdrawals to optimize tax efficiency
Ensure withdrawals align with both short-term needs and long-term goals
Regularly reviewing your strategy helps prevent overspending and preserves your income for the years ahead.
3. Factor in Healthcare Costs
Healthcare is one of the largest expenses in retirement. Review your Over 65 Healthcare strategy each year to confirm that your income plan can accommodate premiums, prescriptions, and out-of-pocket costs.
Aligning healthcare expenses with your income ensures that rising costs do not disrupt your lifestyle or financial security. A retirement planner can provide guidance on integrating healthcare planning into your overall income strategy.
4. Rebalance Investments if Necessary
Market fluctuations can shift the allocation of your investment portfolio. Rebalancing ensures that your assets remain aligned with your risk tolerance, income needs, and long-term goals.
Even minor adjustments can improve sustainability and reduce the risk of running short of income later in retirement. A retirement planner can help determine whether rebalancing or reallocating funds is appropriate for your situation.
5. Plan for One-Time or Unexpected Expenses
Life events such as home repairs, travel, or family obligations can affect your income needs. Incorporate flexibility into your income strategy by reviewing anticipated and potential one-time expenses.
Having a buffer or contingency plan ensures that unexpected costs do not jeopardize your retirement security.
6. Update Beneficiaries and Important Documents
Life changes may impact beneficiary designations or other retirement-related documents. Annual reviews are an ideal time to confirm that your records reflect your current intentions, protecting your assets and simplifying planning for your loved ones.
7. Coordinate With a Retirement Planner
A retirement planner can provide insight into your overall strategy, helping you balance income, healthcare costs, and lifestyle priorities. Regular consultations allow for proactive adjustments, ensuring that your plan remains aligned with your goals throughout the year.
Start the Year With Confidence
Reviewing retirement income strategies at the start of each year ensures that your plan remains sustainable, coordinated, and aligned with your lifestyle goals. By assessing income sources, withdrawals, healthcare costs, investments, and documentation, you can enter the year with clarity and confidence.
Scheduling an annual review with a retirement planner provides guidance, accountability, and peace of mind—helping you maintain a retirement strategy that supports both your current needs and long-term financial security.
