By George McFadden

As the new year begins, it’s the perfect opportunity to reevaluate your retirement strategy. With economic uncertainties and market fluctuations continuing to challenge retirees, securing your financial future with a predictable income stream is more important than ever. Let’s explore how you can start 2025 with a solid plan for guaranteed retirement income and peace of mind.

Understanding the Retirement Gap

Many retirees are surprised to learn that Social Security, on average, covers only about 40% of their pre-retirement income. This leaves a significant shortfall that must be addressed to maintain your desired lifestyle. Traditional strategies often rely on market-based investments to fill this gap, but these approaches come with risks, including market volatility and income unpredictability.

Take a moment to reflect: if the market were to take a downturn this year, would your retirement income plan withstand the impact? For many, the answer is uncertain, and that uncertainty can lead to stress.

The Risks of Traditional Approaches

The conventional wisdom of withdrawing a fixed percentage from your retirement portfolio each year might sound simple, but it’s far from foolproof. Market declines, especially early in retirement, can erode your savings faster than anticipated. This “sequence of returns” risk often forces retirees to cut back on spending or risk outliving their money.

Beyond the financial risk, there’s the emotional toll. Retirees frequently express concern about whether their money will last. Market-based strategies, while potentially lucrative, often fail to provide the peace of mind that many retirees crave.

The Solution: Guaranteed Income and Protected Retirement Solutions

Imagine starting the year with a clear understanding of how much income you’ll have every month—regardless of what happens in the stock market. That’s the power of protected retirement solutions, such as annuities, which can act as your personal pension.

These products provide guaranteed monthly income, ensuring your essential expenses are covered for life. Unlike traditional investments, annuities are designed to eliminate market risk, offering predictability and security.

For example, let’s look at Jim and Nancy, (1) a couple approaching retirement. They had $500,000 in savings and were concerned about market swings. After reviewing their needs, we allocated a portion of their funds to a fixed annuity, guaranteeing $3,000 a month to cover their basic expenses. The remaining funds stayed in the market for discretionary spending, allowing them both security and flexibility. Today, Jim and Nancy enjoy retirement without the stress of market fluctuations.

Why 2025 Is a Prime Year for Annuities

The financial environment in 2025 presents unique opportunities for retirees. Interest rates are at their highest in years, making guaranteed income products more attractive than ever. Many annuities now offer additional features like inflation protection, ensuring your income keeps pace with rising costs, or long-term care benefits for added peace of mind.

Even if you already own an annuity, this could be the year to reevaluate its performance. With higher interest rates, you might qualify for better payouts or enhanced features. Reviewing your existing contracts with a professional can uncover opportunities to improve your retirement plan.

Quick Tips for Building a More Secure Retirement

To create a retirement plan that brings confidence and stability, consider these essential steps:

• Diversify income streams: Combine Social Security, annuities, and other investments to ensure a stable financial foundation.
• Plan for emergencies: Set aside an emergency fund for unexpected expenses, like medical bills or home repairs, so you don’t have to tap into your guaranteed income.
• Evaluate your current annuities: Have your existing annuities reviewed to ensure you’re getting the best value and features for your needs.
• Leverage higher interest rates: Explore new annuity options that take advantage of current rates, offering improved income guarantees.
• Focus on longevity: Choose solutions that ensure your income lasts as long as you do, providing peace of mind in your later years.

Moving Forward With Confidence

The start of a new year is the perfect time to take control of your retirement planning. Partnering with a financial expert who understands your unique needs can simplify the process and provide the guidance you need to make informed decisions.

For over 25 years, I’ve helped retirees create personalized plans centered around safety and predictability. My educational approach ensures that you fully understand your options without the pressure of a sales pitch. Whether you’re considering annuities, optimizing your existing retirement plan, or simply looking for clarity, I’m here to help.

Let’s Talk About Your Retirement Goals

Every day, thousands of Americans retire, wondering if their savings will last. You don’t have to figure it out alone. Let’s discuss your financial goals and explore solutions tailored to your needs.

Schedule your complimentary 15-minute consultation today. Together, we’ll create a plan that helps you retire stress-free, with the confidence that your income is protected no matter what the future holds .To schedule a meeting, call (216) 272-2333, email [email protected], or make an appointment online.

Your path to financial peace of mind starts here.

About George

George McFadden is the principal at Retirement Protection Solutions, a financial advisory firm in the Greater Cleveland area focused on guiding clients in the “Retirement Red Zone”—those nearing or entering retirement who need protection, reasonable growth, and guaranteed retirement income. With over 25 years of experience working alongside top financial advisors across the U.S., George saw a significant gap in traditional retirement planning. His mission is to fill that gap by helping clients protect their hard-earned savings and create a reliable retirement paycheck that lasts for life.

Many advisors offer a broad array of investment services that expose clients to market risk, often leaving those approaching retirement vulnerable. George’s value proposition is different: he emphasizes protection, ensuring clients don’t lose their principal, and offers guaranteed retirement income solutions to provide lasting confidence and peace. In partnership with Retirement Realized, George brings clients strategies that focus on safety and security, designed specifically for those who want to retire stress-free without relying on risky market-driven approaches. George is passionate about educating retirees on their income options, answering their questions, and separating fact from fiction. He believes the best benefit he provides to clients is a guaranteed retirement income that lets them sleep soundly at night.

Outside of the office, George enjoys golfing, biking, hiking, fly fishing, and boating. He is also deeply committed to supporting research for a cure for Type 1 Juvenile Diabetes, inspired by his daughter’s battle with the disease. To learn more about George, connect with him on LinkedIn.

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(1) Names changed for confidentiality purposes.