Six tips for turning your assets into income

This article will:

• Explain how to turn savings and investments into reliable retirement income, helping you align your retirement plan with everyday living expenses.
• Show how different income sources — like a retirement account and taxable income — work together and what to consider when deciding which assets to tap first.
• Highlight tools such as a retirement calculator and simple planning tips to help estimate income needs and improve long‑term retirement confidence.

As you get closer to retirement, it is natural to start picturing what you want your next chapter to look like and how much it might cost. Saving for retirement is important, but knowing how to turn those savings into reliable income is just as critical. A thoughtful retirement income strategy can help you feel more confident that your money will support the lifestyle you want. The following six tips can help you begin shifting from saving assets to generating income that lasts.

1. Think beyond a lump-sum goal

When most of us save for retirement, we imagine the final dollar amount we want to reach. But it’s important to consider how much of that amount you’ll need each month or year. Focusing on income instead of a single number can help you better understand whether your savings will truly support your retirement needs.

2. Include all your income sources

The more accurate your view of retirement income, the stronger your strategy will be. Be sure to include income from pensions, Social Security, personal savings, and other investments. Understanding how these sources work together can help you estimate how much income you may have over time. To learn more about Social Security benefits, visit ssa.gov.

3. Understand how taxes can have an impact

Many traditional retirement plans allow you to contribute on a pretax basis, which may help reduce your taxable income while you are working. However, withdrawals from those accounts are generally taxed in retirement. Roth accounts work differently, since contributions are taxed upfront and qualified withdrawals are tax-free. Knowing how taxes apply can help you plan withdrawals more effectively.

4. Pick a withdrawal approach

There is no single way to take income from your retirement savings. Common approaches include:

• Fixed dollar amount — You withdraw the same amount on a regular schedule.
• Fixed percentage — You withdraw a fixed percentage of your portfolio each year, so your income will vary based on how much you have in your account.
• Investment earnings only — You withdraw only investment earnings, leaving your principal untouched.

Each option has trade-offs, and the right approach depends on your goals, risk tolerance and market conditions.

5. Understand your withdrawal options

Most retirement plans limit withdrawals before age 59½ without a penalty, and required minimum distributions generally begin at age 72. Understanding these rules can help you avoid unnecessary taxes or penalties. Your Equitable Advisors Financial Professional can help you identify when and how to begin taking income.

6. Determine the best time to start withdrawing income

Knowing when to start taking income is just as important as how you take it. Tools like our retirement income calculator can help you estimate how much income your savings may provide and how changes such as increased contributions could improve your outcome. With clearer estimates, you can fine-tune your strategy with greater confidence.

Turning retirement savings into income is a key part of preparing for the future. If you need any help creating or updating your retirement income strategy, please contact your Equitable Advisors Financial Professional.