More – Longer – Less

More – Longer – Less

In my talks around the country, I frequently speak on retirement income and trying to make the income stream more efficient. Often this means having to discuss taxation and overall income disbursement. There are a lot of major hurdles that today’s advisors will encounter while helping clients plan for retirement income.

  • Low Savings Rates: Comparatively, the United States savings rate is painfully low. With the exceptions of high inflationary periods or market corrections, our personal savings rates have been on a steady decline in the last four decades. The end result is the average baby boomer born in the 1960s only has $131,900 saved for retirement1.
  • Misuse of Social Security: Less than 5 percent of Americans choose to defer their Social Security benefits until they are 702. The benefits of the primary wage earner waiting until then typically outweigh taking income early. The spousal and inflation protection gained with this strategy relieves pressure from many portfolios. 
  • Defined Benefit Plan Changes: Older generations used to look to guaranteed income as a staple in their retirement plans. Today, more accountability is placed in the employee’s hands, but they are given little information about how to convert those assets into income. The default distribution is usually a simple, systematic withdrawal plan that does not account for longevity.
  • Longevity: People are living longer than ever before. It’s more difficult to plan for an unknown ending as the date moves further away from us each year. Extended life expectancies mean we need to plan for more income – and income disbursements – when we need more care.


The end result is this: advisors are going to have to work out how to generate more income, for longer periods of time, with less assets than ever before.

This generation of advisors has more challenges to face than have been seen in the financial industry for the last twenty years. This means we have to think, act, and plan differently. Our world is changing, and we must adapt to the new world – or lose the client’s confidence.


Winning Strategy: Understand the new rules of retirement income planning. Think and act differently than you have previously in order to adapt to the new world of income planning. 


About the Author

Mike McGlothlin is a team leader, retirement industry activist and disciple of Indiana Hoosier basketball. In addition to being EVP of retirement at Ash Brokerage, he is a sought-after writer and speaker. His web series, “Winning Strategies,” provides insight and motivation for financial advisors in many forms – blogs, books, videos, podcasts and more. His latest book, “Free Throw for Financial Professionals,” is available now – learn more at


1 LIMRA FactBook