4 Genius Things People Do With Their Retirement Accounts After Retiring (and 4 To Avoid)
“Annuities can offer peace of mind and protection against outliving one’s savings, but they also come with fees and limitations,” she said.
What Retirees Should Do With Their Retirement Accounts
Blair said that to make the most of their retirement accounts, individuals should adopt a holistic approach that prioritizes their long-term financial security and well-being.
“This approach encompasses not only financial wealth but also physical health, emotional well-being and social connections — core principles of Holistic Wealth,” she said. “Retirees and pre-retirees alike can benefit from reevaluating their financial strategies and embracing a more comprehensive perspective on wealth management.”
According to Blair, here are some options retirees should consider when making decisions about their retirement accounts.
1. Create a Sustainable Withdrawal Strategy
Blair explained that instead of retirees indiscriminately withdrawing funds from retirement accounts, they should develop a sustainable withdrawal strategy that balances income needs and asset preservation.
“This may involve calculating a safe withdrawal rate based on life expectancy, market conditions and anticipated expenses,” she said.
According to Morningstar’s 2025 retirement research, a safe starting withdrawal rate for new retirees is 3.7% for a 30-year retirement horizon, though this can vary significantly based on individual circumstances, portfolio allocation and other income sources like Social Security. William Bengen, creator of the original 4% rule, updated his guidance in 2025 to suggest that many retirees can safely withdraw 4.7% annually.
2. Diversify Income Sources
“Relying solely on retirement accounts for income may leave retirees vulnerable to market fluctuations and longevity risk,” Blair said. “By diversifying income sources, such as through Social Security benefits, pensions, rental income and part-time employment, retirees can create a more resilient financial plan.”
3. Optimize Tax Efficiency
Blair pointed out that minimizing taxes is essential for maximizing retirement income.
“Retirees should strategically manage withdrawals from different types of accounts (e.g., traditional vs. Roth) to minimize tax liabilities over time. Additionally, exploring tax-efficient investment strategies and taking advantage of available tax deductions and credits can further enhance overall tax efficiency.”
4. Consider Long-Term Care and Healthcare Costs
“Healthcare expenses can significantly impact retirement finances, especially as individuals age,” Blair said. “Retirees should plan for potential long-term care needs and explore options such as long-term care insurance or health savings accounts (HSAs) to mitigate the financial burden of medical care.”
Bottom Line
Blair said that making the transition from accumulating to distribution in retirement shouldn’t be taken lightly because it requires careful planning and consideration of various factors.
“By adopting a holistic approach to wealth management and embracing principles of financial literacy, individuals can make informed decisions that lead to a fulfilling and secure retirement lifestyle,” she said.
Caitlyn Moorhead contributed to the reporting for this article.
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