Planning for retirement often involves organizing different financial pieces that may help support your future lifestyle. While there is no universal template, people often begin by estimating expenses, evaluating income sources, and selecting savings tools that align with their timeline and preferences.
A retirement plan may evolve over time based on changes in income, health, and priorities.
Elements That May Factor Into a Retirement Plan
Some of the decisions involved in retirement planning revolve around estimating future needs and determining potential resources. These may include living expenses, healthcare costs, Social Security, and personal savings. Each person’s approach may differ depending on life stage, income, or retirement lifestyle preferences.
A plan may include a variety of components, like the examples listed in the table below:
| Component | Purpose |
| Estimated Retirement Age | Helps shape timeline and Social Security claiming options |
| Income Sources | May include savings, pensions, Social Security, or business proceeds |
| Healthcare Planning | Accounts for insurance and medical costs, especially before Medicare |
| Savings Vehicles | Options like 401(k), IRA, or brokerage accounts, for example |
| Inflation Considerations | Adjusts future cost expectations to account for price increases |
| Required Distributions | RMDs (required minimum distributions) may apply to certain retirement accounts |
The weight or importance of each element may vary by individual, and some people revise their plans as they near retirement or experience life changes. Factors such as health status, marital status, inflation, or shifts in employment can all influence how and when different income sources are used or prioritized.
Estimating Retirement Expenses
Identifying anticipated retirement expenses can be one of the first steps in evaluating long-term needs. These expenses may include housing, utilities, transportation, groceries, healthcare, and discretionary spending. Health-related costs, in particular, may increase with age.
Some people use budgeting worksheets or online calculators to estimate expenses in retirement. While actual spending can vary year to year, having a baseline idea of how much you spend in a month during retirement, may help evaluate the income needed to cover future costs.
Possible Income Sources in Retirement
Retirement income may come from a combination of sources, and people often consider how each source may contribute over time. While some sources provide guaranteed payments, others may fluctuate based on market performance or individual spending habits.
Common retirement income streams include Social Security benefits, employer-sponsored retirement plans such as pensions or 401(k)s, and personal savings or investments held in IRAs or brokerage accounts. Additional income might come from part-time work, annuities, or rental properties.
Understanding the role and reliability of each income source can help you plan for depending on claiming age1.
- Social Security: Based on lifetime earnings; benefits vary
- Personal Savings: Retirement accounts such as 401(k)s, IRAs, or Roth accounts
- Annuities: Available to as regular payments
- Work Income: Part-time work or consulting income during early retirement years
- Rental Income: May supplement monthly income, depending on property ownership
Planning a retirement strategy often means organizing income and savings in a way that aligns with your goals, timeline, and financial situation. If you’re evaluating where to begin or how to move forward, contact Vantage Point today. Our team can help you live retirement boldly and on your terms.
Citations:
- Starting Your Retirement Benefits Early, SSA.gov, June 19, 2025
Investment advisory services are offered through Vantage Point Financial, a registered investment adviser. Registration with any regulatory body does not imply any particular level of skill. This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Working with a financial planner does not ensure financial success or prevent loss. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The scenarios presented are hypothetical and are intended for illustrative purposes only. They do not reflect actual client results and are not guarantees of future outcomes. Individual results will vary. Certain financial strategies may offer tax advantages, but outcomes depend on individual circumstances and are subject to change due to tax laws and other external factors. Vantage Point Financial does not provide legal or tax advice. Consult a tax professional. Retirement outcomes depend on a variety of factors, including individual savings behavior, market performance, health events, and other considerations. Certain statements herein may reflect the firm’s current views, expectations, or beliefs, which are subject to change without notice. For additional information about our services, fees, and disclosures, please refer to our Form ADV Part 2A, available at https://vantage-point.mwdevsite.com or upon request at no cost.
