Retirement Income Planning

Why Full Retirement Age Matters

One key factor in retirement income planning is your Social Security Full Retirement Age (FRA)—the age at which you become eligible to receive your full Social Security benefit amount. As of 2025, FRA is 67 for those born in 1960 or later. Claiming benefits earlier can reduce your monthly income by up to 30%, while delaying can increase it by up to 8% per year until age 70.

This timing decision directly impacts your long-term income and financial confidence. At Foxcove Financial, we help clients understand how their FRA affects their broader strategy and how to coordinate income sources—such as Social Security and annuities—to create dependable, insured income throughout retirement.

Understanding your FRA is more than just checking a date—it’s about protecting your long-term financial security. We help clients make these decisions with clarity and confidence, using insurance-based planning tools rather than risky market speculation.

Annuity vs. Market-Based Income: What’s the Difference?

Feature	Fixed Annuities	Market-Based Investments
Principal Protection	✅ Yes – Protected from market losses	❌ No – Subject to market volatility
Guaranteed Lifetime Income	✅ Yes – Income for life through insurance	❌ No – Income depends on portfolio performance
Growth Potential	Moderate – With fixed or indexed returns	Higher – But with added risk
Long-Term Care Enhancements	✅ Often included or optional	❌ Not included
Legacy Planning Options	✅ Structured wealth transfer features	✅ Yes – Through inherited investments

Fixed annuities can complement your retirement plan by creating an income foundation you can count on—especially when combined with other insured strategies.

How Do You Prepare for an Income-Rich Retirement Future?

It begins with disciplined financial habits you can adopt today:

• Maximize contributions to your 401(k), IRA, or other retirement savings accounts.
• Adjust your asset allocation to reflect a shift from growth to income-focused planning.
• Reduce recurring expenses—such as paying down your mortgage—to create greater flexibility later.

Accumulating wealth is the starting point. Converting and protecting it to generate income for life is the true goal of retirement planning. Here’s how to begin:

#1: Understand the Major Financial Goals of Retirement

The two core goals of retirement income planning are: creating consistent income and managing risks that could derail your plan. Partnering with a financial professional can help you:

• Maximize your Social Security strategy
• Minimize taxes on retirement withdrawals
• Allocate assets toward protected lifetime income solutions
• Reduce income fluctuations through market cycles
• Cover essential expenses with reliable income streams
• Plan for rising costs in the later years of retirement

#2: Determine Your Unique Retirement Lifestyle

Your income needs depend on how you envision retirement. Financial author Todd R. Tresidder recommends going beyond one-size-fits-all estimates and defining your personal goals.

If you’re within 5–10 years of retirement, start a conversation with your spouse or partner about your future. Where do you want to live? What matters most—travel, hobbies, family time, or staying close to home?

These decisions directly impact your financial plan. Whether you dream of international travel or exploring national parks in an RV, each vision comes with specific financial needs. Your income plan takes shape as your goals become clear.

#3: Don’t Forget Your Monthly Basic Costs of Living

While retirement dreams are important, everyday expenses form the financial foundation. Use your current spending as a baseline to estimate future fixed costs.

Review a full year of spending and break it down by categories like housing, food, transportation, insurance, entertainment, and healthcare. Don’t forget irregular costs like travel or annual premiums. A thorough budget leads to a more accurate and dependable income plan.

#4: Lower Your Expenses to Raise Your Income

Cutting expenses now can improve your retirement flexibility. If your savings are on track, consider paying down your mortgage or eliminating high-interest debt. Living in a paid-off home can significantly lower monthly costs—and reduce financial stress.

Stick to a budget and avoid unnecessary spending. As Tresidder notes, “Retirees need to earn interest—not pay it.” By trimming expenses today, you’ll need less income later—leaving more room for meaningful experiences in retirement.

#5: Look for Solutions that Help You Achieve Your Income Goals

Once you understand your income needs, it’s time to explore reliable strategies. The best approach will reflect your risk tolerance, financial situation, and personal goals. At Foxcove Financial, we often explore “safe money” strategies—options that protect income and provide consistent results.

One effective solution: fixed annuities. These insurance-based products offer guaranteed income for life. With annuities, you can:

• Protect your principal from market losses
• Secure income that continues no matter how long you live
• Grow your retirement savings with guaranteed interest rates
• Access enhanced benefits for long-term care costs
• Leave a legacy through structured wealth transfer

Unlike market-based investments, fixed annuities transfer longevity and income risk to an insurance company—making them a strong foundation for income stability.

More Confidence with Professional Financial Guidance

Each of these steps helps you build a solid income foundation—but putting the pieces together can be complex. That’s where a trusted financial professional makes a difference.

Studies show that working with an advisor can lead to better financial outcomes, more confident decisions, and greater peace of mind. With a personalized income strategy based on your timeline, assets, and priorities, you can move toward retirement with clarity—and confidence.