For many people, the hardest part of retirement isn’t saving, it’s knowing how to turn savings into a reliable income stream. Without a structured income plan, even well-prepared retirees can second-guess every spending decision in the early years.
At Aul Financial Group, LLC, this phase is often viewed as setting the “pace” for retirement. The goal isn’t simply to withdraw money, it’s to create a strategy that supports your lifestyle with confidence, consistency, and clarity.
Traditional guidelines often suggest retirees can live on a reduced percentage of their working income. In reality, that assumption doesn’t always hold up.
Most retirees want to:
That’s why a personalized income plan starts with one key question:
“What does your ideal retirement life actually cost?“
At Aul Financial Group, LLC, aligning income strategies with real-life spending, not generic formulas, helps create a plan that reflects how people actually live, not how they’re told to live.
A common challenge in retirement planning is the gap between fixed income sources and desired lifestyle expenses.
Income typically comes from:
However, these sources don’t always fully cover expenses. In fact, the Social Security Administration reports that Social Security replaces only about 40% of pre-retirement income for the average worker, reinforcing the need for additional income planning.
When there’s a shortfall, retirees need a strategy to fill that gap in a way that doesn’t create future uncertainty.
Options may include:
The key is choosing the approach that delivers the needed income while using the least amount of capital necessary, preserving flexibility for the rest of the portfolio.
One of the biggest benefits of income planning is reducing reliance on market performance in the early years of retirement.
Without a plan, retirees may:
With a structured income approach, you can:
At Aul Financial Group, LLC, this concept is often compared to rebuilding your paycheck using multiple income streams—some flexible, some guaranteed.
Financial tools like annuities, bonds, or managed portfolios can play a role in income planning, but the effectiveness depends on how they’re used.
Rather than focusing on the name of the product, the better approach is to ask:
For example:
We constantly emphasize to our clients that no single tool works for everyone. The goal is to match the tool to the need, not force a solution that doesn’t fit the bigger plan.
The final 3–5 years before retirement are critical, and many people unintentionally make decisions that increase risk.
Two common mistakes include:
1. Becoming too conservative too quickly
Moving entirely into cash or low-yield investments can make it harder to keep up with inflation, potentially reducing long-term purchasing power.
2. Taking on too much risk to “catch up”
Increasing investment aggression right before retirement can expose savings to unnecessary volatility.
At the same time, many retirees rely on the well-known 4% rule as a withdrawal benchmark. Originally developed by financial planner William Bengen, the rule suggests withdrawing 4% annually from a balanced portfolio may provide sustainable income over time—but it does not account for changing market conditions or individual lifestyle needs.
Instead, this is the time to focus on transitioning from accumulation to distribution, also known as decumulation. That means planning how assets will be used, not just how they are invested.
A successful retirement isn’t just about how much you’ve saved—it’s about how effectively you turn those savings into income.
At Aul Financial Group, LLC, the focus is on helping clients:
When you know where your income is coming from and how long it’s designed to last, you can spend less time worrying about money and more time enjoying retirement.
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Insurance products are offered through the insurance business Aul Insurance Group, LLC. Aul Financial Group, LLC is an Investment Advisory practice that offers products and services through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. IPW does not offer insurance products. The insurance products offered by Aul Insurance Group, LLC are not subject to Investment Advisor requirements. Aul Insurance Group, LLC and IPW are not affiliated companies. 5742559-07/26
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Steven Aul is an independent financial professional with decades of experience helping individuals navigate retirement and financial planning. A Ball State University graduate with a bachelor’s degree in accounting, he is the host of The Aul Financial Hour – Your Money Matters on KMOX 1120 AM/104.1 FM and has contributed to publications including CNN Money, Forbes, and Fortune, while also leading financial workshops throughout the St. Louis area.
Steve believes in full transparency in his practice and designations.
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The RICP® (Retirement Income Certified Professional®) designation is sought by financial services sales professionals whose focus includes clients planning for their retirement income. The designation’s required curriculum is administered by The American College in Bryn Mawr PA, which is accredited by The Middle States Commission on Higher Education, Philadelphia, PA 19104 The mark RICP® is the property of The American College and may be used only by individuals who have successfully completed the initial and ongoing certification requirements for this designation.