For many who are quickly approaching retirement, the difference between a more secure future and a more uncertain one is the success of their retirement income strategies. While the process of determining income for life can be daunting, the framework of the 4 C's provides an easy-to-understand structure for the income planning process.
The 4 C's framework is progressive.
- Starting with clarity, the fact-gathering part of the process, individuals look at the realities of today and then address some basic questions about their future.
- Comfort, the second of the 4 C's, involves identifying the desired lifestyle for what could be multiple decades of retirement living.
- The next C, cost of living, helps evaluate the impact of inflation on retirement savings. While inflation is beyond the control of any individual, it is a tangible risk that will erode personal purchasing power.
- Certainty, the final C in the framework, identifies solutions based on proven data. By accepting the financial realities, clients can live with the knowledge that their short- and long-term retirement income strategies may be realistic and manageable.