A Confident Retirement Starts With These Four Strategies

Retirement brings exciting possibilities, but ensuring your wealth lasts requires thoughtful planning. For high-net-worth individuals, managing retirement income isn’t just about covering day-to-day expenses — it’s about preserving wealth, optimizing taxes and securing a legacy.

With the right strategy, you can close income gaps while maintaining financial confidence for decades to come.

Here are four key strategies to help you achieve a secure and fulfilling retirement.

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1. Optimize your withdrawal strategy in light of tax changes

With tax laws set to shift in 2026 as provisions from the 2017 Tax Cuts and Jobs Act expire, now is the time to rethink how you withdraw funds from your retirement accounts.

Key considerations:

• Roth conversions. Converting traditional IRAs to Roth IRAs in 2025 may reduce your future tax burdens, especially if you expect to be in a higher tax bracket later in retirement. With a Roth conversion, you do have to pay taxes on the amount you convert, but going forward, qualified withdrawals will be tax-free.
• Tax-loss harvesting. Recognizing investment losses offers a silver lining that can help offset taxable gains, improving overall tax efficiency.
• Qualified charitable distributions (QCDs). If charitable giving is part of your financial plan, QCDs allow you to satisfy required minimum distributions (RMDs) while reducing taxable income.

Action step: Work with your adviser to model different withdrawal strategies based on potential tax scenarios for 2026 and beyond.

2. Strengthen your retirement income with resilient investment strategies

Economic shifts and market volatility make it essential to create stable income streams that can withstand uncertainty.

Key considerations:

• Asset allocation. Often viewed as the most important decision for long-run investors, asset allocation helps set portfolio risk parameters. A desire or need for capital preservation generally relies more on stable, income-oriented strategies, though some level of growth/risk remains essential for keeping pace with inflation.
• High-quality bonds. Highly rated fixed income securities, such as U.S. Treasury or high-grade municipal bonds, can help diversify portfolios and reduce risk, all while generating consistent and predictable income streams for investors.
• Dividend-growth stocks. Prioritizing financially strong companies with sustainable, growing dividends may provide more stability than high-yield or growth-oriented stocks during economic downturns.

Action step: Review your portfolio’s income sources to ensure a balance between fixed, market-driven and inflation-protected income.

3. Maximize Social Security and pension benefits

With longer life expectancies, the timing of Social Security and pension benefits plays a crucial role in securing lifetime income.

Key considerations:

• Delayed Social Security benefits. Waiting until age 70 can increase your monthly benefit by 8% per year after your full retirement age.
• Pension payout strategies. Some pension plans offer hybrid options that combine lump sum payments with ongoing income, providing flexibility.
• Longevity planning. Couples may need to plan for at least one spouse living into their 90s, requiring a sustainable withdrawal approach.

Action step: Assess your longevity outlook and income needs to determine the best timing for Social Security and pension distributions.

4. Align wealth transfer and philanthropy with your legacy goals

Many retirees are as concerned with wealth transfer as they are with income generation. Proactive estate and philanthropic planning ensure your wealth serves both your family and the causes you care about.

Key considerations:

• Family governance planning. Structuring conversations around wealth management can help prepare heirs for financial responsibility.
• Donor-advised funds (DAFs). A flexible way to manage charitable giving while benefiting from tax advantages.
• Advanced strategies. Sophisticated gift and estate planning strategies can help reduce potential transfer tax liabilities, while also supporting other goals, such as philanthropic endeavors, current cash flow streams and income tax savings.

Action step: Consider hosting a family discussion to align financial values and legacy goals across generations.

A confident retirement starts with a solid plan

Retirement income planning isn’t just about filling gaps — it’s about creating a strategy that aligns with your goals, protects your wealth and ensures financial security for the future.

With tax laws changing, markets shifting and life expectancy increasing, having a proactive plan in place is more important than ever.

This article reflects financial insights as of February 2025. Given the rapidly evolving nature of tax policy and market conditions, we recommend regular consultation with your wealth adviser to ensure your strategy remains optimally aligned with current conditions.

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• Transfer Amid Tax Uncertainty
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