By Joseph Duffey, president, Everest Financial Inc.
CLU®, RICP®, NSSA
Last month, we suggested you take an overall inventory of your retirement plan and emphasized just how important it is to have a strategy throughout the year.
With 2026 well underway, now we move on to February’s topic: Revisit your income plan.
The first question to ask yourself is: Will my income last as long as I do?
Whether you’re retired or approaching retirement, now is the time to stress-test your income sources — Social Security, pensions, annuities and portfolio withdrawals. Confirm that your income strategy accounts for longevity, inflation and market volatility. Let’s take a closer look at these three important considerations and how they might impact your retirement income plan.
• Longevity
Consider the case of Jane, who retired at 65, feeling confident about her savings and income sources. Like many retirees, she assumed her retirement might last 20 years or so. But today, people are living longer than ever. It’s not uncommon for retirees to spend 25 to 30 years — or more — in retirement.
When Jane and I reviewed her income plan, we ran projections showing what would happen if she lived into her 90s. Without adjustments, her portfolio could have been stretched thin later in life. By incorporating guaranteed income sources and adjusting withdrawal strategies, we built a plan designed to provide income for the long haul.
Longevity risk — the risk of outliving your money — is real. A well-structured income plan should be built with a longer life expectancy in mind to help ensure financial security throughout retirement.
• Inflation
Early in retirement, Jane noticed her monthly expenses felt manageable. But over time, everyday costs — groceries, utilities, healthcare and travel — continued to rise. Even modest inflation can significantly reduce purchasing power over a 20- or 30-year retirement.
When we looked closer at Jane’s income plan, many of her income sources were fixed, meaning they wouldn’t increase as costs rose. To combat inflation, we incorporated strategies designed to provide growth potential alongside steady income. This included reviewing her investment mix and considering income streams that could adjust over time.
Inflation may not feel impactful year to year, but it quietly compounds. Planning for rising expenses is essential to help ensure your income keeps pace with the real cost of living throughout retirement.
• Market Volatility
Jane’s biggest concern came during periods when the market dipped. She worried about withdrawing income while her investments were down, potentially locking in losses and reducing her future income potential.
Together, we built a strategy that created dependable income sources separate from her market-based investments. This allowed her to cover essential expenses without relying solely on portfolio withdrawals during downturns. By maintaining a diversified approach and setting aside income reserves, Jane felt more confident weathering market swings.
Market volatility is unavoidable, but your income plan doesn’t have to suffer because of it. Structuring your retirement income to handle both strong markets and downturns can help provide stability and peace of mind.
• Let’s Revisit Your Income Plan Together
If you’re wondering whether your income will last as long as you do, now is the perfect time to review your strategy. At Everest Financial Inc., I help clients evaluate their retirement income with real-world scenarios and personalized planning.
To learn more or schedule a conversation, visit everestfinancial.net/contact or call 859-291-9290.
Joseph Duffey
Everest Financial Inc.
305 Artillery Park Drive
Fort Mitchell, KY 41017
859-291-9290
www.everestfinancial.net
DISCLAIMER:
Joseph Duffey, CLU®, RICP®, NSSA Financial Advisor, of Everest Financial, Inc. is licensed to solicit and sell securities and advisory services in the following states: KY, OH, IN, AZ, GA, and NC. Joseph Duffey is licensed to sell Insurance Products in OH, IN, KY, AZ, FL, and GA. Securities and Advisory services are offered through Madison Avenue Securities LLC. (MAS) A Registered Investment Advisor, Member FINRA/SIPC. Everest Financial, Inc. and MAS are not affiliated companies. Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation. Please add the following disclosures: Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety or security generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.