Once a client retires, the money they have accumulated must now be used for income. And, just as there are accumulation strategies, there are strategies for withdrawing income to fund the retirement lifestyle.
One important step is to determine the actual amount of desired income needed to maintain the desired lifestyle. The idea is to develop realistic expectations for a client’s expenses and lifestyle goals, and then match it with a realistic income strategy.
Writing a formal retirement income strategy with clients will also help them set realistic expectations for their income and expenses during retirement so they can feel more confident as they enter their golden years. So, here are questions that financial professionals should consider while creating a tailored retirement income strategy with their clients.