Retirement Income Strategies: “How Will I Pay Myself?”

For years, retirement conversations tend to focus on one number: How much have I saved?

That number matters. But once you retire, another question becomes just as important:

How will I turn those savings into income?

In Washington, this question is becoming increasingly relevant. Nearly 18% of Washington residents were age 65 or older in 2024, up from 12.3% in 2010. As more Washington residents enter retirement, creating a reliable source of retirement income is an important part of the conversation.

Your Retirement Savings Have a New Job

During your working years, your 401(k), IRA, investments, and other accounts are focused on building your savings.

Once you retire, those accounts have a different purpose: helping fund your everyday life.

Social Security may provide part of your monthly income. A pension may provide another source. Your retirement savings can help cover the rest.

The question becomes how to turn those assets into a steady income stream while managing the risks that come with a long retirement.

Curious about what your retirement savings could provide? Try our Retirement Calculator for a quick estimate of how your savings may translate into retirement income.

Think About Your Retirement Paycheck

One simple way to look at retirement income is to think about creating your own paycheck.

Start with your expected monthly expenses. Then look at your Social Security, pension income, retirement accounts, investments, and other sources of income.

Seeing the numbers together can help identify where your retirement income may have a gap.

That’s also where different financial strategies can come into the conversation, including systematic withdrawals, investments, and certain types of annuities that can provide predictable income.

Before Making Decisions About Your Pension, Do You Know How It Works?

Your pension can be an important source of retirement income, but understanding the details matters before making decisions about it.

Do you know how your monthly benefit is calculated? When you can start receiving it? What happens to your benefit if you retire early? What options are available for your spouse?

These details can have a meaningful impact on your retirement income.

That’s why we created our 2-Minute Pension Quiz. It’s a quick way to test how well you understand your pension before making important decisions about your retirement income.

Think you know your pension? Take our 2-Minute Pension Quiz →

You may know more than you think—or you may discover a few questions worth looking into before you make your next retirement decision.

Take a Look at Your Retirement Income Before You Need It

Take a look at your retirement income before you need it. What will come in each month? Which sources are guaranteed? How much will you need from your savings?

These are important questions to answer before making decisions about your retirement accounts or pension.

And one question can help start the conversation: How will I pay myself?

If you have questions about your retirement income or would simply like to talk through your options, our team is here to help. Feel free to reach out and start a conversation with us.