Learn and Plan | Financially plan for your retirement income
A retired couple smiles while walking together and eating ice cream.

Financially plan for your retirement income

Apr 24, 2023, 7:33:38 PM | Reading Time: 4 minutes

When you retire you have a lot to look forward to, such as traveling, pursuing your favorite hobbies, spending time with your family, and more. As you approach your golden years, it’s important to consider your retirement income planning to make sure you have the money you need to enjoy them.

Why should I plan my income in retirement?

When you transition from work to retirement you may plan to rely upon your investments, Social Security, and any pensions you might have. But retirement has changed quite a bit in recent decades. People are living longer, costs are rising, pensions are becoming increasingly rare, and there are ongoing questions about the long-term financial health of Social Security. In short, it can be a challenge to secure a dependable and consistent retirement. Have you considered “self-funded” retirement options? Even if you have built a diversified retirement plan that includes savings and investments, that money can be affected by market fluctuations.

Some considerations when planning for your retirement income

Determine your retirement spending needs


To financially plan for retirement income, consider how much money you’ll be spending once you leave the workforce. Having realistic expectations about your retirement costs, spending habits, and income can help you navigate your financial life in retirement. Some points to ponder include:

  • What are your estimated costs for your planned retirement activities such as travel, unexpected expenses, and medical costs?
  • What is the status of your investment portfolio and retirement accounts? When you retire, you will be making a switch from saving to spending. Will assets have some growth potential due to inflation? You may also consider minimizing investment risk to better protect your portfolio.
  • What is your expected income during retirement? This may include Social Security, pensions, annuities, money from a part-time job, or income from a rental property you may own.
  • How long will your savings last? You may outlive your savings, so factor in that possibility to help prevent the well from running dry.

Consider purchasing a fixed index annuity

One type of financial product that can help you secure retirement income is a fixed index annuity (FIA). An FIA is an insurance contract that provides you with income payments in retirement. It is designed for long-term goals like retirement because your interest payments are based on the performance of a stock market index. However, unlike owning stocks, FIAs offer protection against market loss and downturns and are not a direct investment in the stock market.Along with premium protection, FIAs also offer the opportunity for growth that may help guarantee you have a stream of income payments for as long as you live.


Discuss your retirement “paycheck” with a financial professional

Talking with a financial professional about finances is something many people only consider when they are having financial difficulties. However, it’s a good idea to make sure you are on track. Financial professionals can help you be more financially prepared, and ensure you have a retirement “paycheck.” They can offer you options for achieving guaranteed lifetime income. To learn more about how you can ensure you have a retirement “paycheck,” or to find out more about a fixed index annuity, contact your financial professional today.

1. Fixed index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation.

Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.

This information is provided for general reference purposes and should not be viewed as investment advice or as a recommendation for a specific allocation. Neither Midland National, nor any agents acting on its behalf should be viewed as providing legal, tax or investment advice. Always consult with and rely on a qualified advisor.

“Income” or “lifetime income” refers to guaranteed payment of lifetime payment amounts (“LPAs”). It does not refer to interest credited to the contract. You should consult your own tax advisor regarding tax treatment of LPAs, which will vary according to individual circumstances.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.


REV 6/2022