Life expectancy is longer today than ever before. Taxes and inflation will likely increase over the next several years. Given these circumstances, it is understandable why many people are worried about their retirement plans. The following factors, investment volatility, and a highly uncertain financial landscape make it essential to consider including the following strategies in your retirement plan.

Retirement Plan Strategy: Create an Income Plan

One of the most critical steps in retirement income planning is determining how much income you’ll need in retirement and where that money will come from. When you are in your prime earning years, you must plan carefully to ensure you’re putting enough of your current income toward retirement savings and income-producing investments. As you move toward retirement, consider these steps to help you start and develop your plan:

  • List all solid sources of income — pensions, Social Security payments, guaranteed annuities, etc. You can count on these income sources, regardless of what circumstances change in your life.
  • List retirement savings accounts, including employer-sponsored 401(k) plans and IRA accounts.
  • Determine if your projected income will cover your intended lifestyle. Most retirees need 60-80% of their working income to avoid significant lifestyle changes in retirement.

Retirement Plan Strategy: Optimize Social Security Income

There are 567 Social Security income claiming strategies for married couples. Which is right for you? For most, waiting until full retirement age (currently 67) is the best move as it provides more considerable monthly income benefits. If you can wait until age 70, you’ll get the largest Social Security income payment possible.

Retirement Plan Strategy: Know Your Tax Options

Taxation ruins more retirement plans than just about any other financial factor. Many retirees are not prepared for how much of their retirement income is lost to federal, state, and local taxes. Taxable distributions on retirement investment plans such as 401(k) and Roth IRA plans must begin by age 72. Planning ahead for this will help you avoid an abrupt decrease in income. Also, converting tax-deferred income into a Roth IRA can help effectively shield you from excessive taxes. If you are 59.5 years old or older and have maintained a Roth IRA for at least five years, this strategy can allow your funds to continue to grow tax-free. Want to know more about how you can maximize your retirement income and enjoy the stress-free retirement you’ve always dreamed of? Get in touch with one of our experienced professionals at Quantum Strategies Wealth Advisory. We are here to serve you.


Advisory services are offered through Quantum Strategies, LLC dba Quantum Strategies, a Registered Investment Advisor in the State of Pennsylvania. Insurance products and services are offered through William Rizzo, Sole Proprietor.