Your 401(k) Needs a Retirement Income Plan | Dr. Amanda Barrientez

Most Americans spend three or four decades saving. Very few are taught what to do with the pile once the paycheck stops.

On this week's episode of Safe Money Radio, host Brett A. Blake sits down with Dr. Amanda Barrientez, PhD, RICP®, RSSA®, IBC® Practitioner, founder of Retirement Solutions Financial™ and creator of Retirement Income School™. The conversation looks at one of the most under-taught moments in a working life: the day the 401(k) statement stops going up and starts having to fund the mortgage, the groceries, and the trips.

The 401(k) Was Not Built to Be a Plan

Dr. Amanda puts it plainly on the show. A 401(k) is a tax-deferred account. It is a place to hold savings. It is not, by itself, a plan for turning those savings into monthly income for the rest of a retiree's life.

"You have a tax deferred plan and there's no decumulation plan," she says. "That's the biggest problem."

That gap tends to catch people by surprise, especially those who spent 30 or 40 years being told the goal was to keep contributing and keep the balance climbing. The accumulation phase and the retirement phase ask different questions. Accumulation asks how to grow the balance. Retirement asks what that balance is actually supposed to pay a household every month.

Why Safe Money Starts As a Feeling

Dr. Amanda has talked with hundreds of retirees. What she has learned may surprise anyone who assumed the wealthy sleep well at night.

"You could have someone who has millions and doesn't feel safe," she says, "and you could have someone who has very little in their portfolio and feels safe based on the way that they've structured how their portfolio is set up to distribute the wealth."

Safe money, in her framing, is a feeling first. The number matters, but the structure of the plan matters more. A retiree with a predictable monthly paycheck covering essential needs may feel calmer than a retiree watching a large portfolio bounce around with the market.

Research supports the pattern. A 2024 study by Legal & General (an annuity provider) with the Happiness Research Institute found annuity holders were 51% more likely to report lower levels of stress. An April 2026 working paper from the National Bureau of Economic Research (Larrain, Previtero & Severino, w35082) found that among roughly 600,000 Chilean retirees, choosing an annuity was associated with a measurable reduction in five- and ten-year mortality rates. That is not a promise. It is a pattern worth knowing.

The Chain Reaction Nobody Warns You About

Then comes the tax piece. Under SECURE Act 2.0, Required Minimum Distributions begin at age 73 for most people born between 1951 and 1959, and at age 75 for those born in 1960 or later. That is the government's way of saying the tax bill on a tax-deferred account eventually comes due.

Dr. Amanda calls the ripple effects the six chain reactions of RMDs. Higher ordinary income. A larger share of Social Security becoming taxable. Higher IRMAA surcharges on Medicare Part B and Part D. Compressed brackets for a surviving spouse under the widow's penalty. Larger tax bills for adult children who inherit an IRA and, under the SECURE Act 10-year rule, generally have to empty it within a decade. A retiree who has not planned for decumulation may find those forces working against them at once.

Roth conversion strategy, done in the right years and the right amounts, may help take pressure off that chain. It shifts money into a bucket that does not carry an RMD for the original owner and generally passes to heirs without the same tax squeeze. It is not right for every household. It may be right for many.

Why a Retirement Income Specialist May Sit Next to an Advisor

Dr. Amanda is direct about her lane. She is an insurance-only licensed agent. She does not manage equities. She is focused on the retirement phase and the tools that may help build a floor of guaranteed income.

Her point is not that a good accumulation advisor is no longer useful. It is that the accumulation and retirement phases often benefit from different specialties. An advisor who spent decades helping a client grow the balance may not spend day one thinking about IRMAA surcharges, Roth conversion sequencing, and the widow's penalty. A retirement income specialist does.

For many pre-retirees, having both may be the answer. Growth on one side. Income and safety on the other.

What Actually Belongs In a Retirement Plan

By the end of the episode, Dr. Amanda's advice is calm and specific. Build an income floor that covers essential expenses. Understand where the tax bill sits over the next 20 years. Know what happens to a surviving spouse. Understand what an inherited account may cost adult children. Educate yourself before signing anything. And do not do it alone.

"There's no reason to stay up at night worrying about your future," she says. "Get help, educate yourself."

FAQ

What is a decumulation plan? A decumulation plan is a strategy for turning retirement savings into predictable monthly income while managing taxes, longevity, and market risk. It is the counterpart to the accumulation plan that built the balance.

At what age do RMDs start? Under SECURE Act 2.0, Required Minimum Distributions begin at age 73 for most people born between 1951 and 1959, and at age 75 for those born in 1960 or later.

What is the widow's penalty? When one spouse dies, the survivor generally files as a single taxpayer. Brackets compress, and similar income may push the survivor into a higher effective tax rate.

Is an annuity the same as a life insurance product? An annuity is an insurance contract designed to pay income. It may be suitable for some retirees and not for others. See the disclaimer below for suitability and issuer-guarantee details.

Where To Start

Want to take the next step? Run your own numbers with the free WIYN calculator at brettblake.annuity.com, which takes about three minutes. Ready to talk it through? Book a Retirement Clarity Session with Brett. No obligation, no pressure. Brett is a licensed insurance agent and may recommend an annuity if it fits.

For 40 years, the message was fill the bucket. The quieter question is what happens when the bucket has to start pouring.

Worry Less. Live Longer.

About the host

Brett A. Blake is the host of Safe Money Radio and CEO of Annuity.com, Inc. Brett is 58, a Harvard MBA who says his degree taught him almost nothing about retirement income. Before Annuity.com he built a nearly $1B business, starting near $50M. He lives in Gilbert, Arizona with wife Erin, five children and three grandchildren. Brett is a licensed insurance agent, not a CPA or tax attorney.

About the guest

Dr. Amanda Barrientez, PhD (Sociology, CU Boulder), RICP®, RSSA®, IBC® Practitioner, is founder of Retirement Solutions Financial™ and creator of Retirement Income School™. A former academic, she is an insurance-only licensed agent focused on retirement income, Roth conversions, and safe money solutions. Her work helps pre-retirees turn savings into a paycheck. Not a CPA or tax attorney.

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DISCLAIMER:

Safe Money Radio is for educational purposes only and does not constitute investment, tax, or legal advice. Products discussed may not be appropriate for everyone and may be subject to state availability and individual suitability. Always consult a licensed professional before making retirement, tax, or insurance decisions.

Any guarantees discussed are backed by the claims-paying ability of the issuing insurance company. Guarantees are not government-backed or provided by Annuity.com, Inc.

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Annuity.com, Inc. and Brett A. Blake are compensated through commissions and other consideration paid by insurance carriers on policies sold. Neither is a fee-only advisor. Brett is a licensed insurance agent, not a CPA or tax attorney.

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