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Retirement Income Distribution

Retirement Income Distribution – What is it?

For many, the challenge of retirement is to not outlive retirement assets. Income distribution planning plays a critical role in meeting that challenge.

Income distribution planning is the process by which the assets you collect while preparing for retirement (the accumulation phase) are paid out to you during your retirement (the distribution phase). The strategies used during the accumulation phase are very different than the strategies used during the distribution phase. It is vital to correctly position your accumulated assets into a series of investments at retirement in a way that is designed to provide you income for your lifetime.

The process we use is called the NextPhase™ Retirement Income Solution. It is a time-segmented, inflation-adjusted strategy to help you find a balance of investment choices with different, complementary risk and growth opportunities.

The graphic below illustrates how your accumulated retirement assets are divided into different time-segments. The Guaranteed Income Segment is designed to provide immediate, regular income while the other segments are designed to grow over time. As each segment reaches its growth goal over time, they are drained to fill the reservoir that provides your guaranteed income stream.

In the case of Segment #6, it can be used for legacy planning or re-allocated for retirement lasting beyond 25 years.

*Guarantees are based on the claims paying ability of the issuing company.