retirement planning California
19 May 2025 Retirement Income Planning

Creating a Sustainable Retirement Income for Decades in California

California retirees are retiring earlier, living longer, and facing more financial unknowns than ever before. While longevity is something to be celebrated, it also creates a new challenge: making your money last for 20, 30 years—or even longer.

Unfortunately, many retirees don’t have a clearly defined income strategy built to go the distance. In a state like California, where taxes, housing, and healthcare costs often run higher than the national average, that gap can lead to considerable financial stress.

Creating a sustainable retirement income plan is about more than just reaching a savings goal. It’s about having a system that adapts to market shifts, supports your lifestyle, and reflects your goals.

This article from Bulman Wealth Group walks through key income sources, withdrawal strategies, and planning tools designed to support the financial confidence California retirees need throughout each retirement phase.

Core Income Sources for California Retirees

Building a lasting income strategy starts with understanding how each foundational source fits into your broader financial plan.

Social Security

Often, the first layer of income in retirement, Social Security, plays a central role for most households. Choosing when—and how—to claim benefits is a decision that deserves careful thought.

If you’re married, it’s best to coordinate your claiming strategies. Your health, spouse’s longevity, other income sources, and tax bracket can influence the best approach. The goal isn’t just to maximize your benefit—it’s to match your timing to your overall plan.

Bulman’s financial advisors in California help you evaluate your Social Security options based on current needs, tax implications, and retirement goals.

Pensions

If you’re fortunate to have a pension, it can offer a dependable monthly income. How you take it—lifetime payments or a lump sum—can significantly impact your long-term finances. Monthly payments offer predictability but typically end after you or your spouse passes away. A lump sum gives you more flexibility and the potential to pass on unused assets, but it also comes with the responsibility of managing the money wisely.

Your pension should fit into a retirement planning California strategy that accounts for taxes, legacy goals, and income timing.

Additional Income Sources

Part-time work or consulting can provide income without requiring early withdrawals from your savings. Whether it’s from your former profession, seasonal employment, or launching a small business, staying engaged has financial and emotional benefits.

Rental income is another common source. A rental home, vacation property or ADU can deliver steady cash flow and long-term appreciation. Maintenance costs, vacancy risk, and market conditions must be weighed carefully.

At Bulman Wealth Group, we help you evaluate all potential income sources—traditional and alternative—to create a plan specific to your objectives and lifestyle.

Retirement Accounts: Key Building Blocks for Californians

Most retirees will draw heavily from retirement savings accounts. Managing these accounts wisely can mean the difference between longevity and a shortfall in retirement.

Traditional Accounts: 401(k)s, 403(b)s, 457s, and IRAs

These accounts often hold the bulk of retirement savings. If you’re still working, contribute as much as possible, especially if you’re eligible for catch-up contributions at age 50, and the special catch-up provision for ages 60 to 63.

Withdrawals from these tax-deferred accounts are treated as ordinary income, which may increase your tax liability, particularly once Required Minimum Distributions begin at age 73. Start thinking about RMD withdrawal strategies early, like spreading withdrawals over several years or pairing them with Roth conversions to help reduce your tax exposure.

Self-Employed Retirement Plans: SEP IRAs and Solo 401(k)s

If you’re a business owner, SEP IRAs and Solo 401(k)s offer powerful ways to continue saving for retirement. These plans allow for higher pre-tax contributions, reduce taxable income, and support tax-deferred growth.

Roth IRAs

Roth accounts offer tax-free growth and withdrawals in retirement. They don’t have RMDs, making them especially useful for RMD tax strategies. High earners can still benefit through a backdoor Roth IRA, using a traditional-to-Roth conversion.

Taxable Brokerage Accounts and Income-Producing Investments

Taxable accounts often play an overlooked but valuable role in creating a sustainable retirement income. These accounts offer liquidity and flexibility and can be managed to minimize taxes. Here’s how they can support sustainable income:

  • Tax diversification: Having access to accounts that are taxed differently—traditional, Roth, and taxable—gives you the flexibility to draw income from the most tax-efficient source each year.
  • Income-producing assets: Dividend-paying stocks, municipal bonds, and REITs can provide regular income, which can help reduce the need to sell investments during market downturns.
  • Withdrawal strategies: One common approach is the bucket strategy, which divides investments into short-, medium-, and long-term “buckets” based on liquidity needs and risk tolerance. This approach can help preserve principal while meeting monthly income needs.

Planning for Longevity and Rising Expenses

To create a sustainable retirement income that lasts in California’s high-cost environment, consider the following:

  • Invest for long-term growth: Build a portfolio based on your risk tolerance that aims to outpace inflation over time.
  • Rebalance and adjust annually: Regular check-ins help fine-tune your allocation and keep your plan aligned with changing goals or market shifts.
  • Plan for rising healthcare costs: Evaluate Medicare supplements, long-term care insurance, or hybrid policies as part of your long-term planning in California to help manage future expenses.

These steps can help maintain financial stability and support your lifestyle across decades of retirement.

Partner With Bulman’s Financial Advisors in California

The Bulman Wealth Group helps Californians design income strategies built to adapt. Whether you’re nearing retirement or already living it, the right approach can help you enjoy your lifestyle today, without worrying about tomorrow.

Our team brings decades of experience in wealth management and legacy planning, with a deep understanding of the unique challenges faced across California’s diverse regions. We’ll help you develop a flexible strategy that supports your lifestyle today and adjusts to your needs over time.

Whether you’re refining your current plan or starting from scratch, we’re here to support you. Our Roseville, CA, financial advisors and the financial advisor Temecula team understand what it takes to help Californians thrive in retirement.

Schedule your no-obligation consultation today.

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