How to Not Run Out of Money in Retirement
by: Cory Carlton
Let’s talk about a fear that haunts more people than spiders, clowns, and gas station sushi combined: running out of money in retirement.
You work your whole life, pay your taxes (even though you don't understand half of them), and then one day you wake up and it’s time to retire. Congratulations! Now you get to stress about a whole new thing: how long you’re going to live and whether your money got the memo.
Retirement Math: The Only Math That Requires a Crystal Ball
The problem with retirement is that you don’t know how long it’s going to last. It’s like planning a road trip but nobody tells you the destination—or how many rest stops you’ll need. Could be 20 years. Could be 35. Depends on how well you avoided gas station sushi.
And here's the kicker: everything costs more now. Eggs are $6. A movie ticket requires a small loan. And don’t even get me started on the price of a decent recliner. So how do you make sure your money outlives you?
Step One: Make an Income Plan (Yes, Like a Grown-Up)
You wouldn’t go skydiving without a parachute. And if you would, maybe financial planning isn’t your biggest concern. But assuming you enjoy breathing and not living in your car, you need an income plan in retirement.
An income plan is basically a strategy to make sure you still get a paycheck after you stop working—because "retirement" is just a fancy word for "unemployed on purpose."
This plan should include:
- Social Security (which will exist in the future but it could be less than expected)
- Pensions (if you're one of the five people who still have one)
- Annuities (they’re like a self-funded pension… for those of us who didn’t work for the post office and there's zero risk)
- Other income sources like rental properties, part-time work, or finally selling that Beanie Baby collection for the $18 it’s worth
The point is, you need steady, reliable income—money that shows up every month like a sitcom rerun on cable. So, you need an income plan. We help build this for you.
Step Two: Don’t Just Save—Make Your Money Grow
Saving is great. But if you put your money under your mattress, it’s not growing. It’s just being guarded by dust bunnies.
Retirement can last decades. If your money isn’t growing, it’s shrinking—thanks to inflation, taxes, and the occasional emergency root canal. That’s why you need a portion of your money in the market, working for you. Not all of it, because we don’t want heartburn every time the market dips. But enough to outpace inflation and keep your nest egg from turning into a nest Tic Tac.
The market has ups and downs—just like your uncle trying to install Wi-Fi. But historically, it trends upward over time. That’s why having a balanced investment strategy in retirement is key. Growth potential + income plan = not running out of money and not living in your kid’s basement.
Bonus Tip: Don’t Wing It
Here’s what most people do: they wing it. They figure they’ll “just take out what they need” every month. That works great until year 12 when you realize the money is gone and you're trying to turn cat food into a side dish.
Working with a retirement planner (hi, that’s us) gives you a roadmap. We look at your expenses, your income sources, your goals, and even how much you want to leave behind—or not. Some people say, “I want my last check to bounce.” That’s a plan too. A risky one. But hey, we’ll make it work.
Retirement Doesn’t Have to Be a Horror Movie
You’ve already done the hard part—working, saving, not throwing your printer out the window. Now it’s time to make sure all that effort doesn’t disappear faster than your favorite restaurant after you give them a good review.
Let’s build a plan. One that makes sure you enjoy retirement without worrying if you can afford coffee that isn’t instant.
Because running out of money in retirement isn’t funny. But planning for it together can be fun.
Reach out to your Both Hands FG agent or contact us if you want to chat about this topic. OR, if you have the DIY attitude, you can CLICK HERE to complete our complimentary retirement calculator that will give you an idea as to how "on track" you are.
ABOUT THE AUTHOR: Cory Carlton is the CEO and co-founder of Both Hands FG as well as being an Investment Advisor Representative. He's a nerd. A numbers nerd and loves helping people make their numbers work for the retirement they have been dreaming of. When he's not be a nerd at work he's being one with his wife and four kids. Usually doing something outside or diving into a good book series.