Most retirement advice is written for people who are worried they haven’t saved enough.
If you have $1M or more in retirement assets, your challenge is different. It’s about making what you’ve built last, stay tax-efficient, and avoid erosion from decisions made without the right planning framework.
The five insights below come from leading retirement researchers and planners. They are not general personal finance tips—they apply specifically at higher asset levels.
1. Your Withdrawal Rate Should Not Be Treated as Fixed
Christine Benz, director of personal finance and retirement planning at Morningstar and author of How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement, has found that one of the most common mistakes is treating withdrawal strategy as a one-time decision instead of an ongoing plan.
Morningstar’s State of Retirement Income research (December 2025) estimates a conservative fixed withdrawal rate of about 3.9% annually for a new retiree in 2026. It also shows that more flexible approaches—adjusting withdrawals in strong and weak market years—may allow starting withdrawal rates closer to 5.7% under certain strategies.
For a $1M portfolio, the difference is meaningful over a long retirement. The key point is that withdrawal strategy is not static. It needs to adapt over time and be coordinated with other income sources like Social Security, pensions, or fixed income.
2. The Order You Withdraw From Accounts Matters
Most investors hold multiple account types—traditional IRAs or 401(k)s, Roth accounts, and taxable brokerage accounts—but do not have a structured withdrawal order.
Fidelity Investments’ research on tax-efficient withdrawal sequencing (January 2026) found that a coordinated approach may reduce total retirement taxes by more than 40% compared to withdrawing accounts sequentially, based on illustrative examples. Actual results vary depending on individual circumstances.
The biggest opportunity typically exists before required minimum distributions begin, usually at age 73. This window may allow for Roth conversions, tax-efficient rebalancing, and structuring withdrawals to reduce long-term tax exposure.
Once RMDs begin, flexibility decreases significantly. Many accumulation-focused advisers do not build withdrawal sequencing strategies unless specifically trained in retirement income planning.
3. Many Retirement Plans Are Still Built on Outdated Assumptions
Christopher Giambrone, CFP and AIF, co-founder of CG Capital and contributor to Kiplinger, has noted that widely used retirement frameworks like the 4% rule and the 60/40 portfolio were designed for a different economic environment.
Those frameworks were reasonable when developed, but conditions have changed—including interest rates, longevity, and tax structure.
Today’s retirees face longer retirement timelines and more complex tax and market conditions, including heightened sequence of returns risk. Plans built on simple rules of thumb may not fully reflect these changes.
Key areas that often require updating include withdrawal flexibility, tax diversification across account types, and integration of nonportfolio income sources such as pensions or annuities.
4. Many Retirees Don’t Actually Know They Need to Spend
David Blanchett, PhD, CFP, head of retirement research at Prudential Financial, has found that retirees often misjudge their actual spending needs in retirement.
Some underspend early due to caution. Others withdraw without a structured plan and later find their portfolio declines faster than expected.
Blanchett highlights that retirement is unique because the time horizon is unknown—it could last 15 years or 35. That uncertainty requires a different type of planning than fixed-goal financial milestones.
A retirement income plan should account for multiple longevity scenarios, integrate all income sources including Social Security and pensions, and adjust over time as conditions change. Many accumulation-focused advisers are not structured to build this type of plan without specific retirement income expertise.
5. Recent Tax Changes May Already Affect Your Plan
Timothy Steffen, CPA-PFS, CFP, CPWA, director of advanced planning at Baird, has highlighted that the One Big Beautiful Bill Act (July 2025) introduced several changes that may impact higher-income retirees.
These include permanent standard deduction changes, a temporary additional deduction of up to $6,000 per person for individuals age 65+ through 2028 (phasing out at higher income levels), an increased SALT deduction cap of $40,000 through 2029, and updated considerations for Roth contributions and income planning.
These provisions interact with withdrawal timing, Roth conversion planning, Social Security, and required minimum distributions in ways that vary by household.
According to Steffen, 2026 represents a key planning window, particularly because some provisions are temporary and others may change future planning assumptions.
Coordinated tax and retirement income planning is what determines how effectively these changes are used.
CITATIONS
Christine Benz, Morningstar, State of Retirement Income 2025: https://www.morningstar.com/retirement/whats-safe-retirement-withdrawal-rate-2026
Fidelity Investments, Tax-Savvy Withdrawals in Retirement: https://www.fidelity.com/viewpoints/retirement/tax-savvy-withdrawals
Christopher Giambrone CFP AIF, Kiplinger, Is Your Retirement Plan Built for 2026 or Stuck in 2006: https://www.kiplinger.com/retirement/retirement-planning/is-your-2026-retirement-plan-stuck-in-2006
David Blanchett PhD CFP, Prudential Financial, CNBC: https://www.cnbc.com/2026/04/04/401k-balances-retirement-planning-pitfalls.html
Timothy Steffen CPA-PFS CFP CPWA, Baird, 2026 Planning Outlook: https://www.bairdwealth.com/insights/wealth-management-perspectives/2026/01/2026-planning-outlook/
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