Social Security is crucial for most retirees, with benefits accounting for over half of total income for 67% of seniors. However, those with additional income sources must plan carefully to minimize tax burdens and avoid outliving their savings. Prioritize goals and work with a financial advisor to develop a strategic income sequence.

Retirees’ top priorities, such as leaving an inheritance or maximizing lifestyle expenses, impact how they sequence income sources. Concerns about health and long-term care outweigh fears of outliving savings. Working with a financial advisor to establish priorities and plan for various income sources is essential for a secure retirement.

Having income from Social Security, tax-advantaged accounts, and a defined benefit pension puts retirees in a unique position. Only 14% of private sector workers have access to a traditional pension. Without careful planning, guaranteed income sources can lead to significant tax liabilities. Structuring withdrawals based on priorities can optimize the retirement income sequence.

The sequence of 401(k), pension, and Social Security income can help retirees enjoy prime years while minimizing taxes later in life. Prioritizing estate size may involve taking the pension early to convert balances into Roth IRAs strategically. Planning for withdrawals strategically based on priorities is key to financial success in retirement.

Read more at Yahoo Finance: 401(k), Social Security, or pension? The order you choose can mean financial health or disaster. Get it right in 2026