The 4 Building Blocks of a Reliable Retirement Paycheck
When you are working, your paycheck shows up automatically. Taxes are withheld. Benefits are handled. Cash flow is predictable.
When you retire, that structure disappears.
For University of Rochester professionals, this shift is often more unsettling than expected. You may have saved diligently in your TIAA 403(b), but turning savings into a paycheck that feels dependable requires more than choosing an investment or picking a withdrawal rate.
It requires coordination.
A reliable retirement paycheck is built from four core components. Each one matters on its own, but they work best when designed together.
Social Security
Social Security is often the foundation of a retirement paycheck, and the timing decision is permanent.
Claiming too early locks in a smaller benefit for life. That reduction often forces larger withdrawals from your retirement accounts in the early years, which can increase taxes and place additional pressure on your portfolio.
When Social Security is coordinated properly with your investments and tax strategy, it can provide meaningful lifetime income and reduce reliance on market-based withdrawals later in retirement.
The decision is not just about maximizing a benefit. It is about supporting the rest of your plan.
Required Minimum Distributions (RMDs)
Once you reach your early 70s, the IRS requires you to begin taking withdrawals from tax-deferred accounts such as your 403(b).
These withdrawals are not optional. If you are not prepared, they can push you into higher tax brackets, increase the portion of your Social Security that is taxable, and raise Medicare premiums.
RMDs often surprise retirees because they arrive at a time when flexibility is lower. Planning years earlier can help smooth income, reduce tax spikes, and avoid unnecessary pressure on your retirement paycheck.
RMDs are not simply a rule. They are a reminder that timing matters.
Portfolio Withdrawals
Portfolio withdrawals are where many retirement income plans quietly become fragile.
During your working years, market declines often felt manageable because paychecks and contributions were still coming in. In retirement, withdrawals and market volatility happen at the same time.
If markets decline early in retirement while you are taking money out, losses can become permanent. Even strong market recoveries may not fully repair the damage.
A well-structured withdrawal strategy balances growth and stability so your income remains reliable even during periods of market stress. The goal is not to eliminate risk, but to manage it in a way that supports your lifestyle.
Guaranteed Income
Some retirees benefit from having part of their income guaranteed.
This may come from pensions, annuities, or other structured income sources. Guaranteed income is not designed to replace growth. It is meant to create a dependable baseline that does not rely on market performance.
When core expenses are supported by income you cannot outlive, the rest of your portfolio can be invested with more confidence and less emotional pressure.
Guaranteed income works best when it is integrated intentionally, not added reactively.
Why Strategy Matters
These four building blocks do not operate independently.
Social Security decisions affect portfolio withdrawals. Portfolio withdrawals influence taxes and Medicare premiums. Tax decisions today shape how RMDs impact you years from now.
Without coordination, even reasonable decisions can work against each other.
A retirement income strategy brings these pieces together into a single plan. It replaces guesswork with structure and helps ensure your paycheck remains reliable as conditions change.
How Professional Guidance Fits In
Many University of Rochester professionals approach retirement having done an excellent job saving. The next challenge is making sure those savings support spending, not just growth.
A fiduciary advisor can help you:
• Coordinate Social Security with portfolio withdrawals
• Manage taxes across multiple income sources
• Structure withdrawals to reduce long-term risk
• Build income that supports both lifestyle and peace of mind
The goal is not complexity. The goal is clarity.
Final Thought
A reliable retirement paycheck does not happen by accident. It is built through thoughtful coordination and decisions made with the full picture in mind.
If you are a University of Rochester professional approaching retirement, now is the right time to understand how these building blocks fit together.
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The Pitti Group Wealth Management, LLC ("The Pitti Group") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where The Pitti Group and its representatives are properly licensed or exempt from licensure. Tax information is general and not tax advice. Consult your tax professional for guidance.