The retirement income question most people haven’t answered is simple:
“How will you replace your paycheck once you stop working?”
Many people spend years building retirement savings, but far fewer create a clear plan for turning those assets into reliable income. While investment balances often get the spotlight, retirement ultimately comes down to cash flow. The key issue is not how much you’ve saved, but whether your income can support the lifestyle you want for decades.
At Aul Financial Group, LLC, this question often becomes the foundation of a retirement strategy because it impacts everything from withdrawal decisions to tax planning and investment risk.
A retirement account statement shows what you have accumulated. It does not tell you whether that money can create sustainable income.
Consider these three numbers:
For many retirees, guaranteed income may include:
The challenge is determining how to cover any shortfall. According to the Social Security Administration 2026 Retirement Benefits Publication, Social Security is designed to replace only about 40% of pre-retirement earnings for an average wage earner, meaning most retirees need additional income sources to maintain their lifestyle.
Before selecting investments or income products, start with a simple exercise:
For example:
Once you know the size of the gap, you can evaluate potential strategies to help address it.
This is a hypothetical example provided for illustrative purposes only; it does not represent a real life scenario, and should not be construed as advice designed to meet the particular needs of an individual’s situation.
There is no universal solution to the retirement income question. A strategy often depends on goals, risk tolerance, tax considerations, and overall financial resources.
Some common approaches include:
The right solution depends on how much income is needed and how much certainty a retiree wants in their plan.
One of the biggest retirement risks is being forced to sell investments during a market downturn to generate income.
This risk becomes especially important when retirement begins shortly before or during a period of market weakness. Having a dedicated income strategy may help reduce the pressure to make emotional financial decisions during volatile markets.
Recent research shows why this matters. The 2026 EBRI Retirement Confidence Survey found that there was an increase in the number of workers who remain concerned about having enough money to live comfortably throughout retirement. Retiree confidence in Medicare and Social Security benefits is also down in comparison to last year’s results. There is now a bigger focus on protecting income and managing longevity risk.
Income planning and tax planning often go hand in hand.
Many retirees hold significant assets in tax-deferred accounts such as:
Withdrawals from many of these accounts are generally taxed as ordinary income. Planning ahead may create opportunities to manage future tax exposure through strategies such as Roth conversions when appropriate.
The IRS continues to enforce required minimum distribution (RMD) rules on eligible retirement accounts, making proactive tax planning an important component of long-term retirement income management (Source: IRS Retirement Topics and RMD Guidance, 2025).
The retirement income question is not whether you have enough money saved. It is whether you have a clear plan to convert your assets into dependable income.
At Aul Financial Group, LLC, retirement planning discussions often begin by evaluating expenses, identifying guaranteed income sources, and determining how any income gap might be addressed. Once that question is answered, many other retirement decisions become much easier to navigate.
If you’re approaching retirement, the most important question may not be “How much have I saved?” but rather: “How will I replace my paycheck?”
…
Insurance products are offered through the insurance business Aul Financial Group, LLC Aul Financial Group, LLC is also 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 Financial Group, LLC are not subject to Investment Advisor requirements. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, steady and reliable income, or lifetime income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Aul Financial Group, LLC, is not affiliated with or endorsed by the U.S. Government or any governmental agency. 5832631 -08/26
Whether you’re a client or new to us, we’re here to help!
If you have questions or want to learn more, schedule a quick 15-minute call with a member of our team by clicking here.
…
Links to third-party websites are for general information purposes only and do not constitute any offer or solicitation to buy or sell any services or products of any kind. The other parties are responsible for the content on their website(s). You are encouraged to read and evaluate the privacy and security policies on the specific site you are entering. They are not intended and should not be relied upon as investment, insurance, financial, tax, or legal advice.
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.
The CLU® mark is the property of The American College, which reserves sole rights to its use, and is used by permission. The ChFC® mark is the property of The American College, which reserves sole rights to its use, and is used by permission.
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.