Retirement in America
In the 20th century, retirement was simpler:
You worked hard, retired with a guaranteed pension and Social Security income, supplemented by personal savings.
These three sources of income make up what is often called a ‘three-legged stool,’ providing stability, flexibility and peace of mind.
But a lot has changed since then. Pension plans are increasingly rare, replaced by 401(k) and other savings plans.
Today’s retirees must take on the responsibility — and risk — of turning savings into reliable lifetime income.
Building a secure retirement now means creating your own custom version of the three-legged stool: blending Social Security, personal savings, and guaranteed lifetime income for lasting financial security and peace of mind.
Why it Matters
Imagine sitting on a stool with only two legs – it wobbles and feels unsafe.
That’s what retirement can feel like when you rely on Social Security and investments alone for income.
Market volatility can affect your income plan, and there are no guarantees your money will last as long as you do.
A three-legged stool – Social Security, savings, and guaranteed lifetime income – creates stability and flexibility along with the peace of mind every retiree deserves.
The Three Legs – Explained
Social Security
Your foundation of retirement income—steady, inflation-adjusted, and guaranteed for life. But it was never meant to cover everything, replacing only about 40% of the average worker’s pre-retirement income.
Investment Savings
Your 401(k), IRAs, and brokerage accounts fuel growth and flexibility. But markets rise and fall, and withdrawals may not always provide consistent income without depleting assets.
Pensions or Annuities
While traditional pensions are more rare, modern annuities can fill that role – delivering predictable, guaranteed income for life, so your essential expenses stay covered regardless of market conditions.
The Risk of a Two-Legged Stool
Depending only on Social Security and market investments for income can leave your plan vulnerable.
Taking income during market downturns can drive down investment values.
Poor investment timing, or an aggressive spending plan can erode confidence, creating uncertainty, and impacting your lifestyle.
By adding a third leg—guaranteed lifetime income through pensions or annuities—you can restore balance, reduce stress, and gain the freedom to spend confidently in retirement.
A Steady Stool = A Balanced Retirement
When your income comes from all three sources—Social Security, investments, and guaranteed income – you gain what every retiree seeks:
• Income security, even in down markets
• Confidence that your essentials are covered
• Freedom to spend and enjoy the retirement you’ve earned
A balanced stool supports not just your finances—but your peace of mind.
Ready to strengthen your retirement income plan?
Let’s create your personal three-legged stool—blending Social Security, your savings, and guaranteed lifetime income—to help you enjoy retirement with confidence, comfort, and control.