Replacing your income in retirement is a significant undertaking that raises many important questions and requires careful planning. First and foremost, it’s essential to have a retirement income plan to help guide you in this process – whether your retirement is just around the corner or a few years down the road.

With the help of a financial advisor, you can create a comprehensive financial plan that estimates the monthly income you’ll need, addresses any savings shortfalls, and ensures your money lasts as long as you do.

Join Joel Johnson, CFP® as he answers some of your most common retirement income inquiries on Retire Wiser with NBC Connecticut.

How Many Retirement Income Sources Will I Need?

There is no magic number for how many income sources you will need in retirement, nor is there one superior source to have. Most people benefit from a healthy mix of at least two or three guaranteed and non-guaranteed income sources. These typically include Social Security or a pension, a qualified retirement plan like a 401(k), and/or a brokerage account.

The first step to ensuring a steady cash flow is identifying your current income sources and estimating how much income each is likely to provide. This is where having an income plan becomes essential. Within your plan, you can maximize the after-tax income needed to support the lifestyle you’d like to lead in retirement.

When Do I Start Withdrawing from My Retirement Accounts?

Understanding the order and timing of your retirement account withdrawals is critical. Unfortunately, many people fail to learn this lesson until it’s too late. One of the biggest missteps is claiming Social Security too early or too late. Your claiming strategy should be informed by a variety of factors, including your financial need, health status, and vision for retirement.

Another avoidable mistake is underestimating the value of Social Security and pensions compared to larger retirement accounts. Even though these payments come in monthly checks, it’s important to view Social Security and pensions as valuable assets in the context of your entire financial picture. To get the most out of your income plan, each retirement account should be considered when coordinating withdrawals.