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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
- Roth Conversion in a Down Market: Is it Right For You?
- Eight Strategies for Deciding When to File For Social Security
- Living Beyond Age 100: A Possibility With Financial Impact
- Transfer Amid Tax Uncertainty
- Six Steps to Plan Your Charitable Giving
-
New 2026 Tax Change Could Mean More for Your IRA and 401(k) SavingsRetirement Savings Here's how the new IRS inflation adjustments will increase the contribution limits for your 401(k) and IRA in the new year.
-
Giving Tuesday 2025: 'Every Small Act Makes a Major Difference'GivingTuesday encourages generosity in any form, from donating to charity to helping your neighbors.
-
What to Make of a Hot IPO MarketThis year's crop of initial public offerings could be even dicier than usual because of a skew toward tech and crypto.
-
How to Position Your Portfolio for Lower Interest RatesThe Federal Reserve is far from done with its rate-cutting regime. This is how investors can prepare.
-
Show of Hands: Who Hates Taxes? The Best Time to Plan for Them Is Right NowBy creating a tax plan, you can keep more of what you've earned and give less to Uncle Sam. Here's how you can follow the rules and pay only your fair share.
-
'Smart' Estate Planning Can Cause Huge Problems: An Expert Unravels Popular MythsSometimes no plan at all could be better than making these unfortunate mistakes. Don't let your best intentions mess things up for your heirs.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market over the long term.
-
A JPMorgan Fund Holds Its Own Thanks to a Focus on QualityDespite its defensive characteristics, the JPMorgan U.S. Quality Factor holds up in good times and in bad.
-
The ‘Common Man’ Rule of Retirement SpendingThe 'Common Man' rule is for the 'armchair' retiree. It’s a conservative way to live comfortably and leave the rest to heirs.
-
What Fed Rate Cuts Mean For Fixed-Income InvestorsThe Fed's rate-cutting campaign has the fixed-income market set for an encore of Q4 2024.
