The Three Pillars of Retirement Income
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Estimated Read Time 4 Minutes
Retirement isn’t about restriction, it’s about rhythm. The smartest retirees align spending, investing, and taxes into one clear system: the Three Pillars of Retirement. This approach keeps your income steady, your taxes low, and your freedom intact.
What if retirement wasn’t about fear, but flow?
You’ve worked hard to earn your freedom. But anxiety about running out of money or overpaying the IRS can steal it away.
The solution isn’t another spreadsheet. You need a system that:
Protects your essentials
Grows your wealth
Minimizes taxes
Enter the Three Pillars of Retirement.
Pillar 1: The Secure Base: Guaranteed Essentials
This pillar covers the basics that make life stable: home, food, healthcare, and utilities.
Goal: Safety and predictability with money that lets you sleep at night.
Source:
Social Security
Pensions
Guaranteed income (annuity, laddered bonds)
Buffer: Keep a small cash-like safety net (high-yield savings, short-term Treasuries). This is your “emergency oxygen,” untouched by market swings.
Why it matters: When essentials are guaranteed, fear disappears. You can focus on living, not just surviving.
Pillar 2: The Growth Engine: Your Freedom Fund
This pillar funds your “wants”: travel, hobbies, giving, and experiences.
Goal: Growth and flexibility.
Source: A diversified investment portfolio (stock-heavy, low-cost index funds).
The ARVA Spending Rule:
Forget the rigid “4% rule.” Instead, use a flexible percentage that adjusts yearly to market conditions:
Markets up? Spend a bit more.
Markets down? Scale back temporarily to protect long-term growth.
Why it matters: This adaptive approach keeps your money alive longer and stretches your wealthspan across decades.
Pillar 3: The Tax Control Tower: Spend Smart, Not Hard
Knowing how much to spend is just the start. Where that money comes from is equally important. Every dollar sits in one of three tax “buckets”:
The Three Tax Buckets
The Tax-Smart Withdrawal Sequence:
Tax Later: Withdraw enough to fill your lowest income brackets.
Tax Now: Tap taxable accounts for cheap, flexible income.
Tax Never: Pull from Roth accounts to top off spending — tax-free.
Why it matters: Strategic withdrawals minimize taxes, maximize flexibility, and give peace of mind.
The Longevity Angle: Wealth That Lasts
Most retirement plans focus on numbers. Ours focuses on life.
The Three Pillars of Retirement don’t just fund your lifestyle, they fund your freedom. They deliver:
Predictability without rigidity
Growth without chaos
Taxes without panic
When essentials are secure, investments are intentional, and withdrawals are strategic, you gain the ultimate asset: Confidence.
Wealth that lasts isn’t about accumulation. It’s about sustainability.
Your Next Step: Build Your Wealthspan Plan
At Longevity Wealth Strategies, we help clients create Wealthspan Plans that integrate spending, investment, and tax strategies into one living, adaptable framework.
Start your next chapter. Schedule your Wealthspan Review™ today.
Your Next Step
Schedule Your Wealthspan Review™Disclaimer: The information provided is for educational purposes only and does not constitute investment, tax, or financial advice. Consult with a licensed professional before making financial decisions.
References for the article: Sharkansky, S. (2025). The Only Other Spending Rule Article You Will Ever Need. Financial Analysts Journal, 1–25. https://doi.org/10.1080/0015198X.2025.2541567;
Blanchett, D. (2022). Redefining the Optimal Retirement Income Strategy. Financial Analysts Journal, 79(1), 5–16. https://doi.org/10.1080/0015198X.2022.2129947
