Ditch the Nest Egg Mindset—Embrace Income for Life

For decades, planning for retirement has centered on one question: What is your total number? In other words, how much do you need to save to retire comfortably? But new thinking in retirement planning is shifting that focus. Instead of obsessing over hitting a big savings goal, the real question now is: How much monthly income will you need to live well in retirement? That is the new number you need to figure out. But why and how do you figure out “What Is Your Number?”

This change is more than just a financial strategy—it’s a mindset shift. And for people close to retirement, it could make all the difference in how secure, confident, and happy you feel in your next chapter. Your number does not have to be a mystery; let’s explore how to build something more predictable, so you can focus on enjoying life instead of worrying about numbers.

Why the Shift Matters

Many retirees today are finding that having a large lump sum doesn’t automatically translate into peace of mind. Market volatility, the risk of outliving savings, and the challenge of drawing down money sustainably can create stress rather than security.

That’s why institutions like TIAA and other retirement leaders are reframing the conversation: Income is the outcome. Rather than simply saving, retirees should be thinking about how to create a steady, reliable income in retirement.

Guaranteed Income: A Growing Trend

Enter fixed annuities. These financial tools are gaining traction as a central part of retirement portfolios, not just a footnote in the fixed income section. Why? Because they offer what many retirees crave: predictability and protection.

Fixed annuities can offer: • Monthly income for life (or a set period), guaranteed by the issuing insurance company* • Protection from market downturns (subject to product terms) • A potential safeguard against the risk of outliving your assets *Guarantees are subject to the financial strength and claims-paying ability of the issuing insurer.

Some retirement professionals suggest considering annuities as part of a diversified strategy. One common framework involves allocating a portion of your retirement—sometimes up to 30%—to guaranteed income products, depending on your age and financial goals. This should be based on your unique circumstances and discussed with a licensed annuity professional.

The Power of Predictable Income

Retirees consistently share with us how annuities give them the freedom to travel, help grand-kids, and stay active without constantly worrying about market swings. While annuities do not guarantee lifestyle outcomes, clients often tell us they feel much more secure having an income they can rely on. 

What we've learned from retirees with an Annuity included in their overall retirement strategy: 

• Retirees with an annuity were more likely to say they are “very satisfied” in retirement • Retirees said they felt less anxious and less likely to suffer from financial stress or depression • Retirees tell us they are likely to spend confidently, enjoy life, and even live longer

Many share that with guaranteed income streams, they feel more financially secure and enjoy higher levels of satisfaction in retirement.  

Younger Generations, Bigger Worries

Interestingly, Millennials and Gen Z are showing high levels of financial anxiety, often prioritizing global issues over their own retirement futures. Employers are being encouraged to incorporate guaranteed income options and financial wellness tools into their benefits offerings—something that benefits all generations.

What This Means for You

If you’re nearing retirement, it’s time to rethink the plan. Instead of asking, “Have I saved enough?”, consider asking:

• “What will my monthly income look like?” 

• “How can I create more stability and less stress in retirement?” 

• “Should I explore annuities as part of my portfolio?”

And if you’re still working, this shift can help you take more control over your future by focusing on building income streams, not just accumulating assets.

Your Bottom Line

The retirement landscape is evolving. Let’s work together to determine your number—and explore options that can provide predictable income to support it.  It’s no longer just about accumulating wealth; it’s about turning that wealth into a lifestyle you can count on. By focusing on guaranteed income over big numbers, you’re not just planning for retirement—you’re planning to live well.

Let’s Find Your Number   

It’s one thing to save—it’s another to feel comfortable spending. I’d love to walk through your monthly income needs with you and help bring peace of mind—and clarity—to your retirement plan.  

Download Maximizing Retirement Income with Annuities

Disclosure:

Annuities are long-term insurance products designed for retirement purposes. Product guarantees, including income guarantees, are subject to the claims-paying ability of the issuing insurance company. Features, benefits, and availability may vary by state and by product. Early withdrawals may be subject to surrender charges, fees, and tax penalties. This content is for informational purposes only and is not intended as legal, tax, or investment advice. Consult a licensed insurance professional or registered advisor before making any financial decision.