Reframing Retirement Income in Outcome Terms

Managing retirement income can be a major problem to tackle, but a recent report from Guardian Life Insurance Co. of America suggested a framework for plan advisers and their clients. “Income by Design: A Modern Framework for Retirement Confidence” laid out how retirement savers can consider ways of paying for essentials, guaranteed income needs and related tax considerations.

“Guaranteed income” as a concept has a broad base of appeal, with 86% of surveyed retirement savers saying they want guaranteed income, according to BlackRock’s 2025 Read on Retirement survey, quoted by Guardian. Even with widespread interest, there are still misunderstandings in how to incorporate guaranteed income into retirement planning, according to BlackRock’s global head of retirement solutions and head of LifePath, Nick Nefouse.

In a question-and-answer session in the Guardian publication, Nefouse said the low adoption of products offering guaranteed income results from a gap between the goal and how the practicalities of various products are communicated.

“If you talk to people in retirement who have guaranteed income and ask them what they want, they’ll say more guaranteed income,” Nefouse said in a conversation with Erin Culek, Guardian’s head of financial protection and retirement solutions. “But if you ask people in their late 50s or early 60s whether they want an annuity, they’ll often say ‘no’ due to misconceptions. There’s a disconnect there.”

Retirement success is less about accumulation and more centered on income, certainty and participant behavior, according to Guardian. Nefouse said that guaranteed income within retirement should be approached with an outcomes-based, “whole-portfolio” perspective for improved outcomes.

“Whole-portfolio planning starts with the outcome, not the product,” he said. “By reshaping risk, whole-portfolio construction allows people to stay invested, stay disciplined and focus on durable outcomes instead of short-term volatility.”

Managing Streams of Retirement Income

The study also indicated that managing retirement income for retirees requires a framework. According to the publication, an effective retirement income strategy starts with participants assessing both their risk tolerance and whether their expenses are essential or discretionary.

The Guardian report also emphasized the need to consider certain tax calculations for participants, as guaranteed income products are not tax-free solutions. Since each additional dollar of income can affect various taxes, retirement income sources do not operate independently, according to the publication.

One example of these tax considerations is the 3.8% Net Investment Income Tax, which is important for participants entering their 60s.

This framework, according to Guardian, helps determine how much retirement income is needed in each participant’s plan.

“Retirement isn’t a single moment. It’s a long, evolving phase of life,” said Culek in a statement. “When people start by securing income for essential expenses, they give themselves the flexibility to stay invested, manage risk more deliberately and make better decisions over time.”