Redefining Income in Retirement

If I asked what your income is right now, you’d instantly have a number in your head—your annual salary, or your bi-weekly paycheck. It would be a straightforward, easy answer.

But if I asked about your income in retirement, that would require a shift in perspective.

When you’re no longer working, you’re no longer collecting a salary. Instead, your cashflow comes from money that already belongs to you—taking money out of your nest egg. Which is great! That’s the whole point of retirement savings!

But when we sit down and ask how great of an “income” you need in retirement, we aren’t asking about disposable income—this is not a fun money conversation. Instead, we are asking for the number that reflects your absolute minimum, no-frills, true cost-of-living stipend.

Why?

Because the lower we can keep your baseline spending, the more of your portfolio can stay invested and growing, giving you more discretionary spending (and fun) in your retirement

So… How much do I need in retirement?

When your Thornwood Financial advisor asks how much “income” you need in retirement, we really want to know: What’s the bare minimum you need to cover your core essentials?

(Hint: It should be less than your net take-home when working.)

Stop thinking about disposable income and strip your needs down to the basics: Housing, utilities, food, and medical.

The goal is to keep this number as small as possible, so we can grow the rest of your money as big as possible. Our job is to take care of your surplus, giving you even more freedom.

Again, all the money is already yours—it’s not untouchable! You can spend it on an RV, a $20k vacation, or a kitchen remodel whenever you want.

But while you aren’t actively using it, we want that money working for you. The more it grows, the more fun you’re going to have.

bd-sc-r-a-2601-2-2026*