The hardest part of retirement isn’t building your nest egg — it’s turning that nest egg into a paycheck you can’t outlive. Creating income in retirement starts with each executive’s personalized Retirement Income Questionnaire. By clearly defining your real retirement needs, our associates design a plan that carries you through retirement with confidence — without ever having to rely on family for support.
Watch: Why Retirement Income Planning Matters
The Six Risks Every Retiree Must Address
When you stop earning a paycheck and start drawing one from your assets, your money has to do something it never had to do before: last a lifetime. A sound income plan addresses six distinct risks at the very onset of retirement.
1. Market Risk
A market downturn early in retirement can permanently erode the assets you’re depending on. This risk must be minimized so a bad year doesn’t wipe out the foundation of your retirement income.
2. Sequence Risk
It isn’t just what your average return is — it’s the order in which those returns arrive. Withdrawing income during a down market does lasting damage. Consistent, reliable returns matter far more than chasing the highest average. Our retirement paycheck design approach is built to neutralize this.
3. Longevity Risk
With longer life spans, outliving your assets is a real possibility. A well-built plan guarantees income for life — the core idea behind The Perfect Plan® and our work decanting assets into lifetime income.
4. Health Risk
The possibility of needing additional funds for a long-term care facility can derail an otherwise solid plan. Health costs are addressed up front, not as an afterthought.
5. Inflation Risk
The cost of living rises over time, and healthcare often rises faster than your assets grow. Inflation must be built into the plan so you don’t deplete your assets too quickly.
6. Liquidity Risk
Life changes — and your plan must flex with it. Building flexibility for changing needs over your lifetime is critical at the beginning of retirement, because you may or may not need extra funds along the way.
From a Pile of Assets to a Reliable Paycheck
Because your money is now working for you — instead of you working for your money — each of these six risks should be addressed at the onset of retirement through a customized product allocation, not simply an asset allocation. For executives crossing the $150K income cliff, this is where guaranteed-income strategies come into play. You can even build an immediate paycheck from your 401(k) and nonqualified deferred compensation, including funds from a 401(k) Mirror Plan.
Related Resources
- Decanting Assets: Turning Your Portfolio Into Retirement Income You Can’t Outlive
- The Perfect Plan®: Engineering 100% Income for Life’s “What Ifs”
- Retirement Paycheck Design: Where Should Your Income Come From First?
- The $150K Income Cliff: Turn Your 401(k) Into a Guaranteed Paycheck
- The Immediate Paycheck: 3 Steps to Guaranteed Income Tomorrow
Start Maximizing Your Income Today
Your path to a secure retirement begins with the SEB RISQ Questionnaire. Let’s design a plan that turns your assets into income you can count on for life.