Most people spend their working years focused on one big goal: retirement. But something surprising happens when they actually get there.
Many retirees find themselves looking at a pile of savings — IRAs, 401(k)s, maybe a pension or two — and realizing they don’t have a clear plan for how to turn that into a steady paycheck.
So what do they do?
They start withdrawing here and there. A little from this account, a bit from that one. No clear strategy, no big-picture thinking around taxes, and definitely no safety net for the unexpected. It's the retirement equivalent of flying without a flight plan.
Enter: the written income plan.
A written income plan is exactly what it sounds like — a structured, documented approach to how and when you'll draw income in retirement. Think of it as the blueprint for how your retirement funds will support your lifestyle over decades, not just years.
Let’s break down four key benefits of having one.
1. The Comfort of a Paycheck Replacement
You’ve had a paycheck your entire working life. And then, overnight, it stops.
That can be unsettling.
A written income plan restores that sense of financial rhythm. Instead of pulling money randomly from your accounts, you create a system that mimics a paycheck — consistent, reliable, and tailored to cover your “must-haves”: housing, food, healthcare, insurance, and other essentials.
This isn't about “hoping” your money lasts. It's about knowing where your next dollar is coming from — and when. That kind of predictability can take a huge emotional load off your shoulders.
2. It Solves the Sequence of Return Risk
If you're not familiar with the “sequence of return” risk, here’s the short version: it’s not just how much your investments earn, but when they earn it.
If you retire at the start of a market downturn — like in 2000 or 2008 — you could be drawing from a shrinking portfolio. Even if average returns look fine over 20 years, early losses can drastically shorten the lifespan of your savings.
A written income plan allows you to build guardrails around this risk. You can set aside a secure income stream for the first 5–10 years of retirement, giving your more volatile investments time to recover before you tap into them.
That’s smart risk management — not wishful thinking.
3. It Eliminates the Impact of Market Volatility (Where It Matters Most)
Let’s be clear: the markets will always be volatile. But they don’t need to control your retirement.
With a written income plan, your essential expenses are covered no matter what’s happening on Wall Street. This might be through guaranteed income sources like Social Security, pensions, or annuities — combined with stable cash reserves or bond ladders for the medium term.
This “bucket” strategy — where short-, medium-, and long-term needs are matched with appropriate investments — gives you peace of mind. You can weather storms knowing your next few years of income are already accounted for.
4. You Know Exactly Where Your Income Is Coming From
It’s amazing how many retirees we meet who don’t have a clear answer to this question: “Where is your retirement income coming from this year?”
When you have a written income plan, the guesswork disappears. You know what account you’ll draw from and when. You know the tax implications — today and in the future. And you know how that income fits into your broader lifestyle goals.
It’s no longer about pulling from “a big bucket of money.” It’s about using purpose-built pieces of your portfolio at the right time, for the right reason.
Don’t Wing It with Your Future
The traditional “three-legged stool” of retirement — Social Security, pensions, and personal savings — is shakier than ever. For many, that third leg (savings) has to do most of the work. That means your strategy for spending is just as important as your strategy for saving.
And while the 4% rule is a useful starting point, it's not a rule — it's a guideline. It may work well in certain market environments, but in others, it could leave you short. The difference? Having a plan that adjusts for real-world variables — not just theoretical returns.
If retirement is a journey, your written income plan is the map. Don’t leave home without one.
