Income Preservation for Retirees


If you are a new retiree, or planning to retire in the near future, you may be wondering what you should be doing to prepare. The global pandemic has sent the economy into a whirlwind and has created much volatility in the stock market this year. As a result, some people may understandably be worried about where to put their retirement savings.

There is a lot of noise currently in financial circles with the upcoming U.S. presidential election, the ongoing pandemic, and international relations being strained. But these are all relatively short term when you consider the length of your retirement and, as a result, you shouldn’t put too much weight into various current events.

As humans, we are guilty of recency bias which means that we instinctively give greater importance to the most recent event. So when thinking about where to put your retirement savings, don’t worry too much about what has happened in the past six months; looking at the past thirty years as a whole will serve you better.

Capital preservation

Capital preservation is always a very important part of retirement planning, as you want your money to last the length of your retirement. Nobody knows for certain how long the current volatility in the markets will last and, because of this, investing a portion of your money in a principal-protected investment would be wise. The last thing you need to be doing is taking on too much risk. Instead of focusing on earning an extra couple of percentage points on investments, you should be focusing on preserving capital during these times.

Income stream

One of the other key things that people need to look at when doing their retirement planning is earning a steady income. There are many different investments that provide regular distributions, and you should allocate a portion of your money to one of these, as long as it is consistent with your risk tolerance.

What are your goals?

There is no “one size fits all”, and people will have their own plans for retirement and different ideas of what strategy works for them. These strategies should be influenced by the investors’ long-term goals. For some, the main focus will be to have a slowly rising income throughout retirement to help accommodate their lifestyle. For others, leaving a sum of money to their children will be a priority. This will require different investment goals.

Don’t forget about inflation

Finally, over time, the cost of living rises due to inflation, so remember your retirement could be 30 to 40 years. There are investments that track an equity index and protect your principal. These types of investments will help you keep up with inflation, without risking your capital. Ultimately, make sure that you are confident with your decisions, and do what is right for you.

At Retire on Time, we want you to have the retirement you are wishing for.

Please feel free to send this blog post to anyone you think could benefit from it. If you have any questions, please reach out to your financial advisor or myself, Brian Moylett, at, or call/text at 778-951-2806.


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