Skip to main content
Created: January 9, 2022
Modified: January 2, 2025

Episode 63: What is a Good Retirement Income?

Have your question answered on the Money Wisdom Question Series!

The question we’re answering today is, “What is a good retirement income?”

What Do You Want to Spend Your Money On?

This ultimately depends on what kind of lifestyle you want to live in retirement. Let’s take myself and my wife as an example. I’m 60 years old and I’m not going to tell you how old my wife is, but let’s just say she’s around the same age, and let’s say I want to retire at age 65. The best way to start with what a good retirement income is by asking yourself, well, what do we want to spend our money on? Usually, a pretty good indication is what you’re spending your money on today. Let’s say that Wendy and I figure out that we want $10,000 a month of after tax money to spend. That to us is a good retirement income because we just decided it was a good retirement income. That’s the place to start when you want to build your financial plan, when you want to figure out what we need to do to make sure we’ve got that $10,000 coming in after tax so that we won’t run out of money. You get to decide what your ultimate retirement income is. Then, a good financial advisor can come up with a plan based on your guaranteed income sources like Social Security, a pension, or investments, how much can you depend on coming in for the rest of your life.

Inflation and Cost of Living

Of course, we’ve got inflation, which means you’re going to need raises every year to keep up with the cost of living. So that $10,000 I mentioned that Wendy and I would want today, well, five years from now, I’m going to need more money to buy the same goods and services that $10,000 buys today. That might be maybe $11,500 five years from now. A good financial advisor will factor that all in to an income plan.

Takeaways

The answer to the question, “what is a good retirement income?” depends on what you want. The best place to start is deciding what you want, how much money after taxes you need to do that every single month and then a good financial advisor once again can build out that retirement income plan. So, what is a good retirement income? It’s kind of what you decide and then we’ll see if we can make that work.

Thanks for joining me and I hope you found this information helpful!

Download Now

Are You Ready To Retire?

Get information and education that can bring you peace of mind with your savings and retirement.

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

Resources by Topic

Are You Ready To Retire?

Share

Related Resources

  • Today’s Retirement Reality

    Almost one-third of Americans lack confidence that they will have enough income to cover basic monthly expenses throughout retirement. As the economic landscape continues to shift, more individual…
  • How to Prepare for Taxes in Retirement

    No matter how well you’ve saved for retirement, taxes are an unavoidable part of the process. The good news is that with the proper tax planning, you can minimize this burden and keep more of what…
  • What Are Some Unexpected Retirement Expenses to Look Out For?

    Today’s question is one we help our clients navigate all the time: What expenses might I be responsible for as I enter retirement? Nicholas J. Colantuono, CFP® joins this week’s Money Wisdom Qu…
  • Essential Steps for a Robust Estate Plan

    When planning for retirement, one crucial element that often gets overlooked is estate planning. Creating an estate plan can ensure that your assets, legacy, and loved ones are protected. While es…
  • How Can I Generate Low-Tax or Tax-Free Retirement Income?

    Today’s question is: What steps can I take to generate low-tax or tax-free income in retirement? First and foremost, it’s essential to have a tax plan – one that fits within the context of your…
  • Will I Have Enough Income to Retire?

    Once you’ve reached the retirement mountaintop, you may be uncertain about how to navigate the descent. Have you saved enough? Will your money last as long as you do? If you’re like most of the pe…
  • The Right Order to Build Your Financial House

    You wouldn’t design a house that leaves you exposed to outside elements, so why do the same when building your financial house? A well-constructed house first and foremost needs a strong foundatio…
  • Identity Theft: What to Do If Your Identity Is Stolen

    In the digital age, the threat of identity theft is at an all-time high. Sophisticated cybercrime tactics and schemes have left us more vulnerable to online scams than ever before. So, what can…
  • Don’t Let Taxes Derail Your Financial Plan

    A retirement plan that doesn’t consider the impact of taxes can only get you so far. Implementing tax-efficient strategies early on is critical to lowering your lifetime tax liability. After all, …
  • The Road to Retirement – Don’t Go it Alone

    Achieving the retirement you’ve always dreamed of often requires careful planning. While the do-it-yourself approach may be difficult to shake, consider the benefits of seeking professional advice…
    Back to top
    Our Locations
    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Skip to content