Constrained Retirees: Income and Planning

Ryan Wheless and Matt Stevenson of Allied Wealth define today’s constrained retirees and their income needs, taxation in retirement, and Social Security planning.

Constrained retirees are those who will have to rely on their retirement savings for a substantial portion of their income in retirement. Many of these individuals have done well accumulate wealth, but their income need places a demand on their nest egg. For today’s constrained retirees, it is important to understand the potential impact of a stock market downtown on the ability of your nest egg to produce a reliable income stream, and the need for consistency to allow the nest egg to last throughout retirement.

Taxation will likely be many individuals’ largest, or second-largest, expense in retirement. Due to rising debt levels and a changing economic landscape, it is possible that tax rates will be much higher in the future than they are today. Building a plan to mitigate the amount of taxes paid over the course of retirement, and leaving a tax-efficient legacy and estate plan in place for a spouse or children, is essential.

There are many factors that go into determining when to claim Social Security benefits, such as longevity, health, retirement resources, and other sources of income in retirement. A focus is placed on Social Security taxation, and developing an overall approach to fixed sources of income such as a pension and Social Security, and how to combine these sources with income from retirement savings, in the most tax-efficient method possible.

Also read: How Retirement Has Changed Over The Past Decade: 4 Key Changes


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Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.

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