Managing Money For Retirement: Expert Insights On Turning Savings Into Income

Retirement Planning Is Changing, And It Needs To Account For More Variables

If you're approaching retirement, you've probably noticed the rules have changed. Inflation, longer lifespans, and unpredictable markets mean that simply building a nest egg is no longer enough. More Americans are working past 65, not just for the paycheck, but for the benefits and security. The old model—save as much as you can, then spend it down—doesn't compute.

Instead, a "save-and-spend" approach is gaining traction. This means planning for how much you'll save, and how you'll turn those savings into reliable income you can actually use—without running out.

The Problem: Accumulation Alone Isn't Enough

Here's the catch: most retirement plans focus on growing your assets, but not on how you'll use them. As McKinsey research points out, the real challenge is turning savings into a steady, predictable income. Too many retirees underestimate how long they'll live, or how much costs will rise over time. The biggest mistake? Basing your retirement goals on today's prices, not what things will cost 10 or 20 years from now.

And with Social Security and pensions under pressure, the need for a plan that covers both saving and spending is more urgent than ever.

What the Experts Recommend: A Three-Stage, Five-Pillar Approach

So, what does a modern retirement plan look like? Financial advisors are shifting to a more holistic, income-focused strategy. Anthony Pellegrino, CEO of Goldstone Financial Group, encourages people to rethink their retirement - here's a three-stage approach that can help retirees achieve financial security:

• Start Early With Income Planning: Don't wait until you retire to think about income. Begin building guaranteed income streams—like annuities or structured withdrawals—while you're still working.
• Diversify Your Income Sources: Consider all your options: Social Security, pensions, annuities, and personal savings. The goal is to create multiple streams so you're not relying on just one.
• Plan for Taxes and Healthcare: Taxes can eat into your retirement income, and healthcare costs are rising. Smart planning can help you keep more of what you've saved.
• Adjust for Market Volatility: Regularly review your portfolio to reduce unnecessary fees and adjust for changing market conditions.
• Think About Your Legacy: Don't forget estate planning—make sure your assets go where you want them to.

Tips for Building a Save-and-Spend Retirement Plan

Ready to rethink your retirement strategy? Here are some practical steps, inspired by industry experts and the latest retirement trends:

• Start with a Spending Plan: Estimate your future expenses, factoring in inflation and healthcare. Be realistic about what you'll need—and want—to spend.
• Maximize Social Security: Timing matters. Work with an advisor (preferably one attached to an SEC Registered Fiduciary Adviser) to decide when to claim benefits for the best long-term outcome.
• Use Lifetime Income Products Wisely: Annuities and similar products can provide guaranteed income, but they're not one-size-fits-all. Get advice on what fits your situation.
• Review Your Investments Regularly: As you approach retirement, shift toward more stable, income-generating assets.
• Don't Forget Taxes: Tax-deferred and tax-exempt accounts can help you keep more of your money in retirement.

True Safety Is About Income

Retirement today is about saving and creating a plan that lets you enjoy your money, not just hoard it. The best strategies combine smart saving with smart spending, so you can live the life you want, with room to account for force majeure situations.

If you're ready to rethink your retirement, now's the time to start planning for both sides of the equation: saving and spending, and some of America's most trusted advisors can help.