When Should You Update Your Retirement Income Strategy?
Your retirement income strategy isn’t something you set once and never touch again. Life changes. Priorities shift. Markets move. And sometimes, your original plan might not work as well as it once did. That’s why checking in on your retirement income planning from time to time isn’t just smart. It’s necessary.
Whether you're still working or already retired, updating your approach can help make sure your income lasts and supports the life you’ve imagined. People often only think to revisit their plan when a problem pops up, but a proactive review can keep you one step ahead. Below are some signs it might be time to update your retirement income strategy, along with a few tips on when and how to make those changes.
Major Life Changes That Call for a Strategy Refresh
Life doesn’t stay still, and neither should your financial plans. When something big happens, it's wise to step back and make sure the setup you've got still works. Some personal events can affect both your income stream and your expenses, changing how much money you’ll need or how long it needs to last.
Here are a few examples of life changes that could mean it’s time to revisit your plan:
- You get married or divorced
- You welcome a new child or grandchild
- A loved one passes away
- You take on caretaking responsibilities
- You or your spouse experience a change in health
- You move, refinance a home, or shift property ownership
- You receive an inheritance or windfall
Any of these experiences can have effects you might not expect. For example, a divorce not only divides assets but may also alter Social Security benefits and future retirement account withdrawals. On the flip side, welcoming a new grandchild might inspire you to add education support to your long-term goals. Either way, sudden or even happy changes can create gaps in the plan you had before.
It’s a good rule of thumb to look at your retirement income plan after any big event. You want your finances to reflect where your life actually is, not where it was five years ago.
How Market and Economic Shifts Can Affect Retirement Plans
Even if your personal life stays fairly steady, rising prices, new tax laws, and changing markets can impact your long-term income if you leave your plan untouched. Keeping your savings on track means paying attention to what's happening outside your house too.
Economic shifts that might trigger a review:
- Costs are going up, and your budget isn’t stretching as far
- Your investments aren’t performing like they used to
- Tax regulations change and impact distribution plans
- Interest rates shift and affect fixed-income sources
- A recession or downturn drops the value of your assets
Let’s say you built your plan when interest rates were low, and you were relying on steady market growth to meet your needs. If rates rise or the market slows down, the same withdrawal plan might not support your lifestyle. On the other hand, if your portfolio climbs, you might be able to reduce your withdrawal rate and let your money last even longer.
No one can predict the economy, but a smart strategy stays flexible enough to respond when needed. That includes looking at what type of accounts you're pulling from, keeping an eye on tax brackets, and deciding when to adjust investment risk levels.
Checking back in on your retirement income planning during uncertain cycles can help you avoid surprises and keep your money working the way you need it to. Waiting until things settle might mean you’ve already lost valuable ground. Instead, catching the changes early gives you more choices and less stress down the line.
Updating Retirement Goals and Timing
Your vision for retirement may not look the same at 65 as it did at 45. It’s common for people to change what they want life to look like once they’ve had time to think things over or had new experiences reshape their priorities. Maybe you planned to retire at 62 but now want to keep working part-time. Or perhaps you expected to travel every year but have shifted your focus toward staying closer to family.
These kinds of changes can throw off your original income needs and timeline. That’s why it makes sense to revisit your goals and see how your retirement income planning stacks up. If you're thinking about retiring earlier or later than you expected, it could affect how long your savings need to last. And if your lifestyle expectations have grown or scaled back, your strategy should reflect that adjustment.
It’s worth asking yourself:
- Has your desired retirement age changed?
- Are you planning to leave a legacy for family or charity?
- Have your living arrangements or housing preferences shifted?
- Do you want to slow down gradually or stop working all at once?
These answers can provide helpful clues when deciding whether your current income strategy is still a match. Adjusting how much you draw, when you access certain accounts, or how you match your lifestyle to your income can help keep everything aligned.
Why Revisiting Your Investment Portfolio Matters
While retirement goals guide the big picture, your investment portfolio does the heavy lifting. If too much risk sneaks in or things aren't growing how they should, your income could take a hit. That means it’s a good idea to check up on your mix of investments and how they’re doing.
Changes that might spark a closer look at your portfolio:
- Big dips or jumps in the stock market
- Reaching a new age milestone that affects account access or required distributions
- Your income needs shift due to lifestyle or health reasons
- You feel uneasy about your current level of risk
Balancing growth and protection becomes more important as you age, especially if you're already withdrawing income. Holding too much in high-risk investments could leave you exposed when you need predictable income the most. On the flip side, playing it too safe could cause your funds to fall behind rising expenses.
If it’s been more than a year since you last reviewed your investments, or you’ve had any changes to your income needs, it's a good time to reassess. Make sure each piece of your portfolio—stocks, bonds, cash, or other assets—is pulling its weight. You want your money to work smart, not just sit idle.
Factoring in Healthcare Costs
One expense many people overlook in retirement is healthcare. Medical needs often increase with age, and so do the costs. Without the right planning, healthcare can quickly eat into your income.
Planning for these expenses means going beyond just having insurance. It's about understanding what kinds of medical care you might need and building extra room into your strategy to cover costs not included in your coverage. Those could include deductibles, prescription costs, dental or eye care, and extended care services.
Here are a few ways to be prepared:
- Set aside a portion of your retirement income just for medical use
- Explore how a health savings account or long-term care insurance might fit your goals
- Consider possible expenses for home health assistance or assisted living facilities
Even if you're in great health now, that can change without much warning. Including healthcare in your retirement income planning early on can help you avoid tough adjustments later. It’s easier to plan for flexibility now than to scramble when costs suddenly rise.
Give Your Strategy the Regular Attention It Deserves
Retirement income planning isn't a one-time chore. It's something that needs regular care, just like anything else that matters in life. What worked five years ago might not cover your needs today.
A smart move is to schedule a review of your retirement income strategy at least once a year or any time there’s a major life event. That way, you can catch things early, make small changes with less impact, and stay on track with the goals that matter most.
As your life changes and the financial world continues to shift, staying up to date doesn’t just keep you organized—it gives you more clarity and peace of mind. Whether it's tweaking your portfolio, adjusting your withdrawal schedule, or looking at your goals with fresh eyes, each small update puts control back in your hands.
Your retirement income planning should reflect the life you're living now and the future you want. Staying current helps make sure it does.
Taking care of your retirement income planning now can help ease some of the stress about future financial needs. At St. George Wealth Management, we know how important it is to keep your strategies up to date. To explore how you can better prepare for what's ahead and make your savings last, learn more about retirement income planning today. Let us help you build a plan that fits your life and your goals.
