Retirement Planning & Retirement Income Planning

RETIREMENT PLANNING is one of the main goals of most clients. The retirement planning process is aimed at answering that very important question:

Will I have enough money for my retirement?

Factors involved in determining the answer to that question include:

  • Life expectancy
  • Health during retirement
  • Diligence in saving over the years
  • Retirement income sources
  • Return on investments
  • Level of future inflation
  • Size of legacy desired
  • Keeping expenses low

RetireRight Pittsburgh will work with you to answer this important question incorporating the factors listed above, and help you map out your retirement plan.

RetireRight Pittsburgh utilizes retirement modeling software in which different retirement scenarios can readily be evaluated. Once a base set of assumptions is established, the various assumptions can be altered to create additional "What-If" scenarios. The modeling software will illustrate each scenario's likely outcome and probability of success or likelihood of adjustments.


Retirement Income Planning

Do you have an effective income plan that will minimize your taxes and maximize your savings? 

Do you understand the most efficient way to live on your hard earned money without having to give more back to Uncle Sam?

Do you understand how your income affects the taxation of your Social Security Benefits or the premiums you pay for Medicare?

Do you know where your income in retirement will come from?

At RetireRight Pittsburgh we will answer these questions and help you create and manage a tax-efficient withdrawal strategy tailored to your specific needs.  We will help you share in the collective knowledge of the many families we have successfully transitioned into retirement.  We will help you avoid any road blocks and guide you around the unique risks that are associated with retirement income planning. 

Here are 7 risks uniquely felt by retirees that should be addressed with your retirement income plan:

  1. Reduced earnings capacity – Retirees face reduced flexibility to earn income in the labor markets as a way to cushion their standard of living.
  2. Visible spending constraint – While investments were once a place for saving and accumulation, retirees must try to create an income stream from their existing assets as an important constraint on their investment decisions.
  3. Heightened investment risk – Retirees experience heightened vulnerability to risk once they are spending from their investment portfolio. The financial market returns experienced near one's retirement date matter a great deal more than most people realize.
  4. Unknown longevity – The length of one's retirement could be much shorter or longer than a person's statistical life expectancy.
  5. Spending shocks – Unexpected expenses could relate to any number of matters, including health and long-term-care needs, fraud and/or theft, an unforeseen need to help other family members, changes in public policy, divorce, changing housing needs, home repairs and rising prescription costs. Retirees must preserve flexibility and liquidity to manage unplanned expenses.
  6. Compounding inflation – Retirees face the risk that inflation will erode the purchasing power of their savings as they progress through retirement. With just a 3% average annual inflation, the purchasing power of a dollar will fall by more than half after 25 years.
  7. Declining cognitive abilities - A retirement income plan must take into account the unfortunate reality that many will experience declining cognitive abilities, hampering portfolio management and other financial decision-making skills.

Source: Dr. Wade Pfau – 7 Risks for retirement income planning