Retirement Income Planning in Oklahoma – Why Plan Ahead?

Retirement Income Planning in Oklahoma – Why Plan Ahead?

Consider the timeline in which you’ve been accumulating assets. You’ve probably worked hard to make regular contributions to your company’s 401(k), your IRAs and HSAs, and building equity in your home. Your nest egg has become quite sizable, but is it enough to retire?

Retirement plans involve three phases: 

  1. Accumulation
  2. Planning
  3. Distribution

So far, you’ve spent your time in the accumulation phase – the saving and growing phase. Now it’s time to enter the planning phase to see if you can jump into the distribution phase (aka retirement).


What is a good monthly retirement income for you? Find out with TRAC Advisor Group Inc., a full-service, fee-based financial advisory firm in Oklahoma.


The purpose of the planning phase is to determine if the number of assets you’ve accumulated in your working years is large enough to fund your desired lifestyle in your retired years sustainably. To do this, you need a retirement income plan.


What is Retirement Income Planning?

Retirement income planning is the process of creating a roadmap for what your income and expenses will be in retirement. It’s sort of like a budget, but it’s based on your future wants needs, goals, and dreams.

You can use a spreadsheet or a piece of paper to get started. Now, create an outline of your desired monthly and annual income and expenses, and extend it to the end of your retirement. 

Consider your sources of income. There is the forecast of your golden years’ lifestyle as you stand. How does it look? A financial advisor in Oklahoma will help you plan and create a clear path to reach your dreams.


Why is Retirement Income Planning Important?

Think about your current lifestyle. What allows you to live this way? Yes, your income.

Sure, you make sound financial decisions and have been savvy with your money (or not), but your income (and projected future income) drives everything: 

  • Where you live
  • What you eat
  • The car you drive
  • The size of your home
  • Your child(ren)’s education
  • The vacations you take 

That doesn’t change in retirement. Your income is still what you use to provide for yourself and your loved ones.

What does change is where that income originates. Instead of wages from a job, your retirement income comes from your investment portfolio. The size, assets, risk tolerance, asset location, and your behavior will determine the amount of income that the portfolio produces.

Retirement income planning is important because it serves as the basis for living in retirement. Everything you want to do in retirement must be funded on your retirement income plan.

Your plan may include sources such as interest income, dividends, appreciation, a part-time job, business income, rental income, Social Security, or pension income. 

Read: Different Types of Retirement Investment Accounts


Retirement Income Planning in Oklahoma

Does Oklahoma tax retirement income? Here are some basic facts and figures on retiring in Oklahoma to help you plan ahead.


In Oklahoma, the average annual expense for someone 65 years or older is just $45,016, and the average yearly income is $54,019, making it one of the most affordable states to retire in the U.S. The average monthly Social Security check collected by retirees in Oklahoma was $1,488 in 2020.

The average retiree’s investment portfolio probably generated around $3,000 per month in income based on these figures.

These numbers should be used purely as reference points. They are averages and cannot be applied definitively to your exact situation. Your needs, goals, bucket list items, life expectancy, risk tolerance, and income sources may raise or lower these figures. 

What drives the retirement planning process is what your desired retirement lifestyle looks like and how feasible it is based on your current and future retirement savings. The bulk of your retirement plan is driven by your expected monthly income, which is why a stable, efficient, and sustainable income plan is crucial.

State Taxes

Generally speaking, the state of Oklahoma is relatively tax-friendly toward retirees.

Oklahoma doesn’t tax Social Security benefits, and residents may also exclude up to $10,000 per person ($20,000 per couple) for other types of retirement income. 

Additionally, elderly homeowners may qualify for a tax rebate or “freeze” if their income is below a certain level. But, the state has the 6th-highest combined state and local sales tax rates in the nation, averaging 8.95%. Groceries and clothing are also subject to sales tax.

Sooner State residents will also pay property tax rates that fall in the median of the 50 states, at $869 per $100,000 of assessed home value.

For an easy-to-use Oklahoma retirement tax-estimating calculator, click here.

**Don’t forget about Federal taxes**


Should I Hire a Financial Advisor to Create My Retirement Income Plan?

I’m sure you understand the basic principles of a retirement income plan: Identify income, identify expenses, and match the two. Hopefully, if you’re well-prepared for retirement, the difference will be positive. If not, you may need to work and save for a few more years.

But, how do you handle the details? When it’s time to put pen to paper, where do you start? You know you need a sustainable withdrawal strategy, but how do you know the one you create will last throughout retirement while still generating enough income to live comfortably?

Retirement income planning is complex – there are many variables. RMDs, tax-efficient rebalances, global portfolios, asset location – who has time to understand it all?

Plus, you can’t afford to mess it up. Withdraw too much, and you run out of money. Withdraw too little, and you miss out on the retirement you could have had, the one you worked your whole life to be able to enjoy.

Fortunately, you don’t have to do it alone. Financial advisors work with people like you every day and for lifetimes. It’s their job to understand your situation and help you realize where you want to be later. Then, they work with you to connect the two.

Retirement income planning is just one piece of a holistic financial plan. Schedule an appointment with us today and allow us to demonstrate the value we can bring to you today and throughout your golden years. 


Do you have a robust retirement plan in place? Prepare for life’s detours with a TRAC retirement planner today!



TRAC Advisor Group Inc. is a full-service, fee-based financial advisory firm in Norman, OK. We offer independent investment advice and help people withstand any type of market volatility with confidence. 

As an independent investment advisor, we can offer alternative investments like numismatics and precious metals to diversify and hedge against uncertain times. With a straightforward and direct planning style, you can trust that we’ll keep you on track towards your financial goals. 

Explore our new website and Contact Us today to schedule a consultation today. 

More about the author: Tracy McCary

Tracy has been a financial advisor for 30 years, focusing on helping clients reach their financial goals. He is Series 65 and Oklahoma insurance licensed.