Building Your “Retirement Paycheck”: How Do You Continue to Get Paid When You Retire?

This article from guest blogger Nichole Coyle, CFP® CSLP®

When we think about retirement, we often imagine more freedom, more time and, ideally, less stress. But there’s one question that can keep even the most prepared individuals up at night:

“How do I get paid when I’m no longer working?”

It’s a smart question, because a steady paycheck doesn’t stop being important just because you clock out for the last time. In fact, creating a reliable income stream in retirement, your “retirement paycheck,” is one of the most crucial aspects of financial planning. Here’s how I can help clients build theirs:

Step 1: Your Retirement Paycheck Must Match Your Income Needs

The first step is clarity: How much money do you need to live comfortably in retirement?
We typically break this down into a few categories:

Regular/Monthly Expenses:

● Essential expenses: housing, groceries, healthcare, insurance
● Lifestyle expenses: vacations, dining out, hobbies, gifts One-Time/Less Frequent Expenses:
● Long-Term Goals (Just because you retire, doesn’t mean you can’t continue to have goals!) Consider goals like travel, vehicle purchases, and downsizing or relocating.
Once we understand the bigger picture and total monthly figure, we can begin designing a strategy to consistently meet your monthly needs (ideally with guaranteed and semi-predictable sources of income) as well as a long-term strategy for those less frequent/larger expenses.

Step 2: Layer In Guaranteed Income

Think of guaranteed income sources as your base salary in retirement. The following could make up the backbone of your retirement paycheck:

● Social Security: Most retirees receive a monthly benefit. Deciding when to claim it (age 62 vs. full retirement age vs. age 70) can dramatically affect your income.
● Pensions: If you’re fortunate to have one, it can cover a substantial portion of your needs.
● Annuities: These aren’t for everyone, but some retirees use annuities to turn a portion of their savings into guaranteed lifetime income. I often recommend aligning these guaranteed sources with essential expenses, in other words, your financial “safety net.”

Step 3: Strategically Draw from Your Investments

Your retirement savings (IRAs, deferred compensation, 401(k)s, brokerage accounts, and Roth IRAs) power your financial future. But unlike a regular paycheck from your employer, you author your own distributions with a retirement paycheck.
Some common strategies:

● Systematic withdrawals (e.g., 4% rule, but more often customized).
● Dividend and interest income from investments
● Bucket strategies that divide assets into short-, mid-, and long-term time horizons
● Utilizing annuities for guaranteed lifetime income

One size doesn’t fit all. The goal is to make your investments work efficiently while preserving your portfolio for decades of retirement.

Step 4: Tax Considerations and Your Retirement Paycheck

Many people underestimate the role taxes play in retirement. Traditional IRAs and 401(k)s are taxed as ordinary income, while Roth IRAs and certain investments may offer tax-free or lower-tax income.
Key tax planning considerations include:

● Required Minimum Distributions (RMDs) starting at age 73 (or 75 depending on your current age)
● Withdrawal sequencing to avoid tax surprises
● Roth conversions during low-income years
● Tax-efficient investment choices in taxable accounts

A tax-smart withdrawal plan can stretch your savings further and help you avoid an unintended increase in tax brackets.

Step 5: Plan for the Unknown

A successful retirement income plan is more than math, it’s also about managing risk.
Ask yourself:

● What happens if inflation spikes?
● Could I afford unexpected healthcare or long-term care expenses?
● What if markets decline early in retirement?
● Will I outlive my money?

To protect against these uncertainties, I often recommend a mix of cash reserves, insurance, diversified investments, and inflation-sensitive assets. Your plan should be flexible enough to adapt as life changes.

Need help building your own retirement paycheck? Let’s talk! As a financial planner, I help individuals design income strategies that are tax-smart, tailored, and built to last. Schedule a consultation today and take the next step toward a confident retirement.

Nichole Coyle, CFP®, CSLP®
Managing Partner, Financial Planner
2300 St. Clair Ave NE
Cleveland, OH 44114
216.621.4644 x1607 office
330.607.2213 cell
nichole@impactcfp.com

Securities and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC, a Broker-Dealer, and a Registered Investment Advisor.
Cetera is not affiliated with the financial institution where investment services are offered or any other named entity.
Investments are: Not FDIC/NCUSIF insured * May lose value * Not financial institution guaranteed * Not a deposit * Not insured by a federal government agency.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
The views depicted in this material are for information purposes only and are not necessarily those of Cetera Advisor Networks LLC.
They should not be considered specific advice or recommendations for any individual.

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