Portfolio reliance: The importance of diversifying income sources

Retirees who depend heavily on portfolio withdrawals face greater exposure to market swings and inflation, which can put essential spending at risk.

A more balanced retirement plan often combines protected income sources such as Social Security, pensions, and annuity guarantees with portfolio assets. This can reduce pressure on investments and create more predictable cash flow over time.

Tools like the Portfolio Reliance Calculator help advisors show how different income sources may improve sustainability and support better withdrawal decisions. The goal is not just higher income today, but steadier income that can last throughout retirement.