How much can you spend in retirement?

On this episode of A Wiser Retirement™ Podcast, Casey Smith, and Brad Lyons, CFP®, talk about different ways to prepare for retirement and how to determine how much you can spend in retirement.

Listen on Apple Podcasts or watch on YouTube:


Everyone has different circumstances when approaching retirement. These circumstances usually determine the reason why and at what age people choose to retire. What typically happens to people who approach this stage of life without professional guidance is they start by signing up for social security. They might also have a pension (there are a few professions left that are eligible for pensions). Additionally, they count on their lifetime savings to supplement their new income. A few years later, is when people might start to feel the pinch from inflation and feel uncomfortable. While this path may work for many, this is not a retirement in confidence.

Retiring With the Help of a Wealth Management Firm

Even though working with a wealth management firm is not the only path to a successful retirement, it is definitely a path that can provide you the confidence needed to live life to the fullest in retirement. At our firm, we help clients understand that financial success is intentional, and we believe that it can be achieved with discipline and proper planning.

Our Steps to Prepare and Plan for Retirement

  1. Write down all sources of income. Those include social security, 401K, IRAs, and maybe a pension.
  2. Income information is analyzed.
  3. Our software will recommend when you should start taking social security, it also takes into consideration inflation.
  4. We give recommendations of various investment strategies to help your money stretch and beat inflation.
  5. We run a thousand different possibilities of success, targeting an 82% to 85% probability of not running out of money before age 95. 

Incorporate all Costs into Your Plan

In order to have a fruitful retirement, we need to take into consideration your plans and goals for this important period of life. Retirement is not the end of the line. There’s still so much to be lived and enjoyed during retirement. Aside from the cost of living, we like to incorporate the cost of dreams. Each person comes from a different path in life and has different dreams for retirement. The process that we go through to prepare clients for this new phase provides them with the confidence they need to make their dreams come true, while still being able to cover their expenses for the rest of their lives. 

How much can you spend in retirement?

When living in uncertain times, like we do now, it’s important to be organized and think of your finances in different buckets. This will help simplify your planning. The first bucket should be made up of two to three years of living expenses in cash. The next bucket includes the money you probably won’t need in the next 10 years. The third bucket contains stocks and shares. This is the bucket you will probably never touch. Therefore, how much money you can use and live off during retirement depends on your social security strategy, also your pension, and your savings. We focus on using a 4% rate of your savings for living expenses.

We will tell anyone that they can live a prosperous life without having to buy expensive products, such as annuities that in the end, all they offer is a false sense of security. Real security only comes from a well-designed plan, and the discipline to live according to that plan every day.

Download our eBook on “Buyer Beware: Why do they keep trying to sell you that annuity?”


0:00 Intro

7:50 Retiring With the Help of a Wealth Management Firm

18:40 Incorporate All Costs into Your Plan

19:20 How much can you spend in retirement?


Learn more about Casey Smith and Brad Lyons, CFP®


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Learn more about A Wiser Retirement™ podcast and access previous episodes.


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