Retirement income planning is the process of determining how you will generate consistent, tax-efficient income from your accumulated assets throughout retirement. It addresses questions your savings plan never had to answer:

• How much can I safely withdraw each year without depleting my savings?
• When should I start taking Social Security — and how does that interact with my other income?
• How do I manage required minimum distributions (RMDs) without a surprise tax bill?
• What happens to my income plan if one of us passes away?
• How do I account for healthcare costs that rise faster than general inflation?

 A retirement savings plan is about accumulation: putting money in. A retirement income plan is about distribution: getting the right amount out, in the right order, at the right time, while paying as little in taxes as possible.

"Most people plan to accumulate money for retirement. Very few have a plan for spending it wisely for 30 years. Those are completely different problems." — Marty Higgins, CFP®

New Jersey is one of the most expensive states in which to retire. According to national cost-of-living data, NJ residents face some of the highest property tax rates, healthcare costs, and general living expenses in the country. The “$1 million and you’re set” rule of thumb that works in other states often falls short here.

The right retirement number for a South Jersey family depends on:

• Your target annual lifestyle spending — including housing, healthcare, travel, and family expenses
• Your expected income sources: Social Security, pension, rental income, part-time work
• Your investment portfolio size, asset allocation, and expected return
• Your time horizon — a couple retiring at 62 may need income for 30+ years
• New Jersey-specific factors: property tax burden, state income tax on retirement distributions, and healthcare costs before Medicare eligibility

 Our CFP® advisors use The WealthCare Process to build a personalized income projection that accounts for all of these variables — not a national average.  See our full guide on how much you need to retire in New Jersey.

New Jersey is one of the most expensive states in which to retire. According to national cost-of-living data, NJ residents face some of the highest property tax rates, healthcare costs, and general living expenses in the country. The “$1 million and you’re set” rule of thumb that works in other states often falls short here.

The right retirement number for a South Jersey family depends on:

• Your target annual lifestyle spending — including housing, healthcare, travel, and family expenses
• Your expected income sources: Social Security, pension, rental income, part-time work
• Your investment portfolio size, asset allocation, and expected return
• Your time horizon — a couple retiring at 62 may need income for 30+ years
• New Jersey-specific factors: property tax burden, state income tax on retirement distributions, and healthcare costs before Medicare eligibility

 Our CFP® advisors use The WealthCare Process to build a personalized income projection that accounts for all of these variables — not a national average.

The WealthCare Process is our proprietary 6-step planning framework, developed by Marty Higgins, CFP® over 45 years of practice. It’s designed to transform your accumulated assets into a written, 30-year income plan that adapts as your life changes.

When you claim Social Security is one of the most consequential financial decisions you’ll make in retirement — and one of the least understood. You can claim as early as 62 or as late as 70. The difference in lifetime benefits can exceed $100,000 for an individual and significantly more for a married couple.

For South Jersey retirees, the key Social Security questions are:

• Does it make sense to claim early and invest the proceeds, or delay for a larger guaranteed benefit?
• How does the start date interact with my spouse’s benefit and survivor protection?
• What is New Jersey’s tax treatment of Social Security income?
• How does my Social Security income affect my Medicare premium (IRMAA surcharges)?

Many retirees are surprised to discover that their tax burden doesn’t decrease when they stop working — it changes in ways they didn’t plan for. For New Jersey retirees, several specific tax realities deserve attention:

• New Jersey taxes most retirement income: 401(k) and IRA distributions, pension income, and investment gains are generally subject to NJ state income tax
• NJ does offer a retirement income exclusion for taxpayers under certain income thresholds — structuring your income to stay below that threshold is a planning opportunity
• Required minimum distributions from pre-tax accounts begin at age 73 and can push retirees into higher tax brackets
• Roth conversion strategies, when executed before age 73, can meaningfully reduce future RMD-driven tax bills

 The WealthCare Process includes a multi-year tax projection as part of every retirement income plan.

Healthcare is consistently one of the most underestimated retirement expenses — particularly for families in New Jersey who may retire before Medicare eligibility at 65.

A 65-year-old couple retiring today can expect to spend an estimated $300,000 or more on healthcare throughout retirement, not including long-term care. For South Jersey retirees, key planning considerations include:

• Bridging healthcare coverage from retirement to age 65 via COBRA, ACA marketplace, or spouse’s employer plan
• Medicare Part B and Part D premiums, which are income-sensitive and can add thousands per year for higher-income retirees
• Long-term care planning — the “hidden dinosaur” of retirement costs that most people don’t price until it’s too late

[INTERNAL LINK: Read our full guide on healthcare costs in retirement for NJ retirees]

If you have a traditional 401(k), IRA, or other pre-tax retirement account, the IRS requires you to begin withdrawing a minimum amount each year starting at age 73 (under current law). These withdrawals — called required minimum distributions — are taxable as ordinary income.

For families who have accumulated significant pre-tax assets, unmanaged RMDs can:

• Push you into a higher federal and NJ state income tax bracket
• Trigger IRMAA Medicare surcharges that add hundreds per month to your premiums
• Reduce the legacy you leave to heirs, who may also face a compressed 10-year withdrawal window

 Strategic RMD planning — including Roth conversions, qualified charitable distributions (QCDs), and asset location strategies — is built into every WealthCare retirement income plan. [INTERNAL LINK: Read our complete RMD planning guide]

Research consistently shows that retirees with written financial plans are more confident, more financially secure, and less likely to make reactive decisions during market downturns. Yet the majority of people approaching retirement have never received a written income plan from their advisor.

At Family Wealth Management, a written retirement income plan is not a premium add-on. It is the standard. Every client who goes through The WealthCare Process receives a documented plan that includes:

• A year-by-year income projection for 25–30 years
• Social Security claiming strategy
• Tax efficiency plan including RMD projections and conversion windows
• Healthcare cost projections and bridge coverage strategy
• Estate coordination checklist
• Annual review schedule and trigger events

 [INTERNAL LINK: Read our guide on what a written retirement income plan includes — and why you need one]

A retirement income plan doesn’t end at death — it connects to an estate plan that determines how your remaining assets pass to your family, your community, or both. For South Jersey HNW families, key estate coordination questions during retirement include:

• Are your beneficiary designations up to date on all retirement accounts and insurance policies?
• Has your plan accounted for New Jersey’s inheritance tax, which applies to assets passing to certain beneficiaries?
• Is a Roth conversion appropriate to reduce the tax burden on assets inherited by your heirs?
• Are your power of attorney and healthcare directive documents current and accessible?

 Our team includes Marty Higgins, CFP®, AEP® (Accredited Estate Planner), who brings specialized estate planning expertise to the WealthCare Process. We coordinate with your estate attorney to ensure your income plan and your estate plan work together.

Family Wealth Management has been serving pre-retirees and retirees in Marlton, Cherry Hill, Moorestown, Mt. Laurel, Medford, Voorhees and throughout South Jersey since 1999. Our team of CFP® advisors brings a combined depth of specialization that is rare among independent firms:

• Martin V. Higgins, CFP®, ChFC®, CLU®, AEP®, LUTCF®, RHU® — founder, 45+ years, Mutual of Omaha Hall of Fame, creator of The WealthCare Process, author of DistributionLand: A Retiree's Survival Manual for Transitioning to a World of New Rules & Unexpected Dangers .
• Scott Mahoney, CFP®, CMFC®, ChSNC®— senior advisor, 15+ years, specializing in comprehensive retirement income planning and transitions
• Michael Einhorn, CFP®, ChFC®, CDFA® — specializes in divorce financial planning and business exit strategies
• Scott G. Higgins, CLTC®— young family wealth building and lifestyle financial planning

 We are an independent firm affiliated with Mutual of Omaha Investor Services, Inc. (Member FINRA/SIPC). Our independence means our planning recommendations are driven entirely by what is right for your family — not by proprietary product requirements.