Retirement Income

Learn why planning for retirement income is not the same as retirement planning, and how to prepare for five retirement realities that may affect you.

It’s important to understand that taking income in retirement (distribution) requires a different investment strategy than saving for retirement (accumulation). The table below outlines the key differences:



Emphasis on return

Emphasis on income and capital preservation

A focus on creating a personalized investment portfolio

A focus on creating a total retirement income plan

Time horizon clearly defined, yet adjustable

Time horizon unknowable and not adjustable

Impact of market declines is more manageable

Impact of market declines is less manageable

Inflation managed by wage growth

Inflation managed through investment choices

Learn about the five retirement realities and ways that you can work with your financial professional to reduce their impacts:


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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.