A Model Approach to Selecting a Personalized Retirement Income Strategy

Abstract

This study identifies and validates a set of scorable retirement income factors to define preferences for an overall retirement income style. This investigation further attempts to create a workable model for retirement income planning by showing how the factors connect to four main retirement income strategies: systematic withdrawals with total return investing, risk wrap with deferred annuities, protected income with immediate annuities, and time segmentation or bucketing. Approaching retirement income agnostically and matching retirement income strategies based on an individual’s personal retirement income style may lead to improved outcomes that achieve greater “buy in” and comfort.

Keywords: Retirement planning, retirement income, systematic withdrawals, annuities, psychology

JEL Classification: D14