By Jim Dunlop, CFP®, Wealth Advisor and Managing Partner at Advent Partners

After years of saving and investing, one of the biggest questions people face is how to actually turn those savings into reliable income. The shift from building wealth to using it can feel uncertain, especially when markets fluctuate and income is no longer tied to a paycheck. That’s where retirement planning becomes essential.

In this article, I explore four practical steps to help you convert your savings into a steady, thoughtful income stream, so your financial resources can support both your lifestyle and the impact you want to make.

Step 1: Define Your Income Target

The first step in retirement planning is understanding how much income you’ll realistically need each year.

Start by mapping out your core expenses:

• Housing (property taxes, insurance, maintenance)
• Food and utilities
• Healthcare premiums and out-of-pocket costs

Then layer in lifestyle choices:

• Travel and experiences
• Giving to family or charitable causes
• Hobbies and activities

For example, a couple may determine they need $110,000 annually:

• $70,000 for essential expenses
• $40,000 for discretionary spending and giving

This number becomes your baseline. From there, you can evaluate how much of that income can come from reliable sources versus your investment portfolio.

Step 2: Coordinate Your Income Sources

Most retirees don’t rely on a single income stream. Instead, income typically comes from a combination of sources:

• Social Security
• Retirement accounts (401(k)s, IRAs)
• Taxable investment accounts
• Business income or rental properties

A thoughtful retirement planning approach focuses on how these sources work together.

For instance:

• Delaying Social Security can increase your monthly benefit
• Drawing from taxable accounts early may allow tax-deferred accounts to continue growing
• Using Roth accounts strategically can help manage taxable income later

If your annual need is $110,000:

• $40,000 comes from Social Security
• The remaining $70,000 is drawn from investments

How you structure those withdrawals can significantly impact your tax bill and how long your assets last.

Step 3: Build a Withdrawal Strategy That Adapts

Once income sources are identified, the next step is creating a withdrawal strategy that can adjust over time.

A common starting point is the “4% rule,” but in practice, retirement planning often requires more flexibility.

Consider two different years:

• Year 1: Markets are strong, your portfolio grows, and you take planned withdrawals.
• Year 2: Markets decline, but withdrawals continue at the same level.

Without adjustments, this can place additional strain on your portfolio.

To manage this, many retirees use a tiered approach:

• Short-term funds (1–3 years of expenses) in more stable assets
• Long-term investments positioned for growth

This allows you to draw from stable sources during down markets while giving your growth investments time to recover.

For example, if you need $70,000 from your portfolio, you might:

• Pull from cash or short-term bonds during a downturn.
• Rebalance and replenish those funds when markets recover.

This kind of disciplined approach helps manage volatility without overreacting to short-term changes.

Step 4: Align Income With Your Values

For many individuals and families, retirement brings a renewed focus on purpose, including how your resources can support others while sustaining your own needs.

This is where retirement planning becomes more personal.

You may choose to:

• Help children or grandchildren with education or home purchases
• Support your church or charitable organizations
• Fund causes that reflect your values

For example, say a client sets aside $10,000 of their annual income to support charitable giving. 

By building that into their income plan, they can be able to give consistently without disrupting their long-term financial strategy.

There are also tax-efficient ways to give, such as qualified charitable distributions (QCDs) from IRAs, which can reduce taxable income while supporting meaningful causes.

At Advent Partners, we often see clients find a deeper sense of fulfillment when their financial decisions align with their values. Retirement income becomes more than a paycheck replacement, it becomes a tool to make a difference.

Retirement Planning: Turn Your Savings Into Income With Purpose

If you’re working through retirement planning and thinking about how to turn your savings into income, it can be helpful to see how all the pieces fit together in your specific situation.

At Advent Partners, we work with individuals, families, and business owners to build income strategies that reflect their goals and values. From coordinating income sources to incorporating tax-aware giving and long-term planning, our approach is designed to help you stay ready, for your future and for the opportunities to make a meaningful impact along the way.

Reach out to our team by calling (717) 525-9535 or sending us a message online.

Frequently Asked Questions

What is the best way to turn retirement savings into reliable income?

A reliable retirement planning approach starts with understanding how much income you actually need each year, then coordinating income sources like Social Security, retirement accounts, and taxable investments to meet that goal. A flexible withdrawal strategy is also important so you can adjust during market changes instead of relying on a fixed formula. Working with a financial advisor like our team at Advent Partners can help your income plan support both your lifestyle and your long-term financial stability.

How much can I safely withdraw from my retirement portfolio each year?

Many people reference the 4% rule as a starting point, but retirement planning should go beyond a simple rule of thumb. Your ideal withdrawal rate depends on factors like market conditions, healthcare costs, retirement age, life expectancy, and other income sources. A personalized withdrawal strategy helps shield your portfolio from unnecessary strain while giving you confidence that your savings can last.

How can retirement planning help me reduce taxes on retirement income?

Retirement planning can help reduce taxes by creating a smart withdrawal strategy across different account types, such as traditional IRAs, Roth IRAs, taxable brokerage accounts, and Social Security benefits. For example, drawing from taxable accounts early or using qualified charitable distributions from IRAs may help lower taxable income later. Our Advent Partners team helps clients build retirement income plans that balance cash flow needs with tax-efficient decision-making so they can keep more of what they’ve worked hard to save.

About Jim

Jim Dunlop, CFP®, is a Wealth Advisor and Managing Partner at Advent Partners, where he leverages 23 years of experience to help high-income families and business owners in Central Pennsylvania build generous, tax-efficient legacies. Recognized on AdvisorHub’s “100 Advisors to Watch” list, he specializes in holistic retirement and estate planning through a collaborative, education-first approach. A pioneer in the independent RIA space, Jim is driven by a faith-rooted calling to help clients transform their wealth into meaningful abundance for their families and communities.