What’s Your Retirement Income Style?

The ‘right’ solution for retirement cash flows is extremely personal. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=46746&elqTrackId=637fc78c4bed45189411a2acf56776b5&elq=d4864dfbfde74a86b26a0626f898c1da&elqaid=46746&elqat=1&elqCampaignId=23018) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] I’ve long enthused about the idea of a simple “do-it-for-me” solution for retirement income, much as target-date funds have effectively lightened the load for retirement accumulators. Wouldn’t it be great if retirees could “turn on” a paycheck equivalent and get on with their lives? But there are a few factors that complicate the development of one-size-fits-all—or even one-size-fits-most—solutions for retirement income. One is that retirees’ health and financial profiles vary dramatically. In addition, we all have different retirement income “personalities,” a point that was driven home as I went through the Retirement Income Style Analysis questionnaire developed by Wade Pfau and Alex Murguia. Some retirees are comfortable with equity risk and pulling their cash flows from a total return portfolio, for example, while others want lifetime income with a guarantee. I wrote about what you can learn about your own retirement income style in [this week’s article](. (The article also includes a link to take the questionnaire yourself.) Elsewhere on the retirement beat, [John Rekenthaler took a closer look at the oft-cited assertion that today’s retirees have it worse than they did several decades ago]( when pensions were still prevalent. He concludes that’s not quite right, but the specific reasons may surprise you. I also appreciated [Mark Miller’s examination]( of what has to be one of the most frequently asked questions in retirement planning: whether to sign up for Medicare at 65 even if you’re still working and receiving healthcare coverage from your employer. With more people working longer, for financial and nonfinancial reasons alike, the border between work and retirement is growing more porous. That adds nuance to what had previously been straightforward decision-making in retirement planning. Finally, I’m happy to say that I started a trend on our team: fessing up to financial mistakes. [I took stock of my own sins of omission and commission a few weeks ago]( and [my colleague Amy Arnott did the same this week](. (You’ll notice some overlap between our two lists.) I hope that our self-assessments motivate you to do a little reflection on your own plan, what you could do better as well as what you’ve gotten right. With warm regards, Christine Benz [What’s Your Retirement Income Style?]( Let’s stop bickering about the ‘right’ way to generate retirement cash flows. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Retirement in America: Were We Better Off 50 Years Ago?]( Examining nostalgia for the golden age of retirement. [Read More]( [Arnott: My 8 Biggest Financial Mistakes]( I’ve avoided most of the major pitfalls, but I don’t have a perfect record. [Read More]( [5 Investing Mistakes Anyone Can Make]( On my failings as an investor. [Read More]( [Retiring Earlier Than Expected? How to Manage Your Finances]( How to calculate cash flows and generate supplemental income if you’re retiring sooner than you’d planned. [Watch Now]( [Should You Keep Foreign Stocks Out of Your IRA?]( Tax considerations suggest yes, but other factors may argue against it. [Read More]( [Joel Dickson: How America Saves]( Vanguard’s global head of advice methodology discusses key trends in company retirement plans: contributions, allocations, and advice-seeking. [Listen Now]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602