Different income sources have different start dates, tax treatment, reliability, inflation protection, and survivor rules. A useful plan models those differences instead of adding everything into one permanent monthly number.
1. Social Security
Use the benefit estimate associated with a specific claiming age. Record the start date and whether the estimate is in today's dollars. For couples, model the survivor scenario rather than assuming both payments continue for life.
2. Pension income
Compare the available payment forms, including any survivor option and cost-of-living adjustment. A single-life pension and a joint-and-survivor pension are not interchangeable monthly numbers.
If a lump sum is available, compare it with the pension in the context of taxes, longevity, investment responsibility, and the protection offered to a spouse.
3. Portfolio withdrawals
Portfolio income is not simply the dividends an account happens to produce. A retirement withdrawal strategy may use interest, dividends, and planned sales across taxable, tax-deferred, and Roth accounts.
Model a starting withdrawal and stress it against inflation, poor early markets, fees, and taxes. Make the assumptions visible so the result can be challenged.
4. Net rental-property income
Begin with collected rent, then subtract mortgage payments, property taxes, insurance, management, maintenance, vacancy, capital repairs, and a reserve. The remaining cash flow—not gross rent—is the amount that can help fund retirement.
Create a separate scenario for a prolonged vacancy or major repair. Also decide whether the property is intended to be held for life or sold later to fund another goal.
5. Annuity income
Record when payments start, whether they change with inflation, whether they continue for a survivor, and which guarantees depend on the issuing insurer. Separate an existing contract from a hypothetical future purchase.
6. Part-time or consulting work
Use net, realistic income and give it an end date. Work can reduce early portfolio withdrawals and provide purpose or benefits, but a plan should not require employment at an age or health level that may be unrealistic.
7. Alimony, royalties, and other recurring payments
Document the legal or contractual duration, variability, taxes, and what could cause the payment to stop. Treat a reliable lifetime payment differently from income that may last only a few years.
A useful calculator allows these sources without pretending they are all guaranteed. Add the income, then stress-test its loss.
Primary sources
Rules and limits change. Use these official sources to verify details for the year in which you act.
See what your current numbers imply.
Start with a transparent estimate, then use this guide to decide which assumption deserves a deeper look.
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