Avoiding a Just-in-Case Retirement is simple... It's something we help people with everyday.  It starts with having an optimal retirement plan.  One that properly converts your retirement assets to guaranteed retirement income.  You're probably wondering well if it's so easy, why aren't I familiar with how to do it?

It's because many of us have grown accustomed to the conventional wisdom of Wall Street, which suggests that we should keep our money in the market, and continue riding the wave throughout retirement.  Many even say that if we withdraw a measly 4% per year for income, everything will work out fine.  We tend to disagree with this advice and here's why.

The 4% withdrawal rule is inefficient.  Spending too much will lead to a shortage later in life.  Spending too little could cause a lower standard of living.  The 4% rule is dynamic.  It does not accurately reflect real-life spending habits.  As in your working years, your income needs in retirement will also change.  Lastly, the 4% rule is not guaranteed.  Because your nest egg is exposed to the market, it is at risk of loss in the event of a downturn in the market or even worse a recession.  Thus, restricting your spending ability during these times.

When the 4% withdrawal rule was invented by William Bengen in the 1990s, the retirement landscape was completely different than it is today.  The average retirement horizon was only 10-12 years.  Today, retirement for many will last 30+years.  We need to make sure our money lasts that long too.

Relying solely on the markets for your retirement income can potentially create a long list of uncertainties such as:

• How will the future markets perform?
• How long will we live?
• Where will future interest rates be?
• What will inflation be?
• What will your actual retirement expenses be?

Just a few wildcards could severely impair your retirement income plan.

Next, add up your sources of Guaranteed Income

Your sources of guaranteed income are Social Security, Pensions, and Annuities with a Lifetime Income feature.  Income from any other sources such as investments, real estate, etc. is not guaranteed and should not be used in this calculation.

Step 2:  Add up your guaranteed income:  Social Security Income + Pension Income(if applicable)=

What is your basic needs Income Gap?

Step 3:  Take the total of your current guaranteed income and subtract the total of your basic needs budget.

If you have a negative amount, this means you have an income gap.  Your costs are more than your current guaranteed income amounts.  If this is the case, proceed to the next step.

Fill your Income Gap with a Fixed Annuity with a Lifetime Income Feature

Step 4:  Here is where we will determine how much of your retirement assets need to be converted into guaranteed retirement income in order to fill your income gap and cover your basic needs of retirement.

We recommend working with a local licensed Fiduciary Advisor who specializes in guaranteed retirement income planning.  A Fiduciary Advisor will help you build a holistic financial retirement plan and then use their tools to identify the best lifetime income annuity solution for your specific needs.

Having your basic needs of retirement covered by guaranteed sources of lifetime income will give you peace of mind and confidence in retirement, reducing the amount of worry and more importantly the effects of living a "just-in-case retirement."

How Do I Find The Best Annuity for Lifetime Income?

Annuity Association offers a free Fiduciary Framework process to every client.  Our Fiduciary Framework process includes:

• Guaranteed Retirement Income Foundation Plan
• Longevity Plan
• Legacy Plan
• Liquidity Plan
• Research of over 4,000 annuities to find an optimal solution for your needs 

To schedule your Fiduciary Framework plan with a local licensed Fiduciary Advisor, please complete the form below.