WE Alliance Wealth Advisors founder and CEO Terry Wheeler discussed retirement income gaps in an interview on the Influential Entrepreneurs podcast. In his conversation with host Mike Saunders, Wheeler addressed how retirees can compare expected income with the money needed to support their desired lifestyle.
The announcement defines a retirement income gap as the difference between income needed to maintain a comfortable standard of living and income projected from available sources. Wheeler’s discussion covered assessing that need, reviewing income sources and considering ways to address a shortfall.
WE Alliance Wealth on Estimating Retirement Needs
Wheeler said retirees should assess essential expenses alongside discretionary spending. The announcement names healthcare, travel and leisure among the costs to consider, as well as essential living expenses. It says retirees can evaluate what they need, want and wish for in retirement.
Formulas and rules of thumb can help estimate income needs, but the announcement says estimates may need adjustment for inflation. It gives the example of a retiree who estimates a need of $15,000 per month. Without accounting for inflation, that amount may need to double or even triple in 15 years to maintain the same standard of living.
The announcement says stress-testing portfolios against inflation is important when forecasting future income needs. Wheeler’s comments appeared in a published interview announcement.
WE Alliance Wealth Discusses Income Sources
The announcement lists Social Security benefits, pensions, and personal savings or investment portfolios as common retirement income sources. It describes Social Security as providing a stable, inflation-adjusted income stream, while pensions may vary with employment history and an employer’s offerings.
Wheeler emphasized securing a “base level of income” that retirees cannot outlive. The announcement says portfolio design or private pensions may provide consistent cash flow. It describes this foundation as a way to help retirees focus on their “go-go years,” the early retirement phase when people are often more active and engaged in travel and leisure.
A shortfall may arise when Social Security and pensions do not cover needed monthly cash flow. The announcement identifies mistakes that can complicate planning: underestimating future expenses, overlooking changes in income needs during retirement, and lacking a strategy to convert lump-sum investments into regular cash flow. It also says some people focus on total portfolio value while neglecting cash flow management.
Approaches to Retirement Income Gaps
The announcement outlines shifting from accumulation strategies toward growth with defense and income-focused strategies. It names dividend-paying stocks, bonds and annuities as possible ways to generate more reliable income streams.
A systematic withdrawal plan is another approach described in the announcement. It can help manage the depletion of retirement savings while meeting income needs. The plan should be flexible enough to adapt to market fluctuations or unexpected expenses.
Retirees may also reassess lifestyle choices to align expectations with their financial situation. The announcement lists downsizing, relocating to a more affordable area and reviewing discretionary spending as possible adjustments. Wheeler said some clients accustomed to delayed gratification may need to learn to spend more and enjoy the retirement they worked to build.
Wheeler also said people without a pension through government work or some private employers, including Kaiser Permanente, may benefit from creating one for themselves and a spouse. He described securing basic future income through portfolio design or private pensions as a first step: “So the first step is let’s secure that base level of income that you cannot outlive.”
WE Alliance Wealth Advisors and Strategic Wealth Legal Advisors are described in the announcement as founded on an integrated, Family Office style approach to wealth planning. The stated approach combines proactive tax strategies, an investing system called Defined Outcome Investing, and estate planning. The announcement also notes Wheeler’s book, Laugh When the Market Crashes, and says the firm’s roots trace back over 35 years, beginning at Dean Witter Reynolds.
The announcement says its opinions and projections are for general informational purposes and advises consulting a financial advisor before investing. Its practical next step for retirees is to compare anticipated expenses with projected income, review available sources and consider a flexible cash flow strategy.
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