Why a Retirement Income Review Matters

Retirement income rarely flows from a single source. Most retirees draw from a combination of Social Security, pensions, IRAs, 401(k)s, and potentially other assets — each governed by its own rules, timelines, and tax treatment. A gap in any one area can reduce lifetime income or trigger unexpected tax bills.

This checklist is designed as a personal audit tool, not a substitute for advice from a licensed financial adviser, CPA, or attorney. Work through each section at your own pace, and flag items that need professional follow-up. For a broader look at income options beyond Social Security, see our guide to retiree income sources.

Social Security

Log in to your my Social Security account at ssa.gov and verify your earnings record for accuracy, as errors can reduce your benefit. Must
Confirm your projected benefit at ages 62, 67 (full retirement age for most), and 70 to understand the trade-offs of claiming early versus delaying. Must
If married, review spousal and survivor benefit options to determine the election strategy that maximises household lifetime income. Must
Check whether you have earnings from employment while receiving Social Security before full retirement age, which can temporarily reduce benefits. Should
Verify that Medicare Part B enrollment aligns with your Social Security start date to avoid late-enrollment penalties. Must

Pension and Defined Benefit Plans

Request a current pension benefit statement from your former employer or plan administrator and confirm the monthly amount. Must
Review available payment options — single life annuity versus joint-and-survivor annuity — and document which option you have elected or plan to elect. Must
Verify that beneficiary designations on file match your current intentions, as pension beneficiary rules differ from IRA rules. Must
Confirm whether your pension includes a cost-of-living adjustment (COLA) provision, which affects long-term purchasing power. Should

IRAs and Employer-Sponsored Plans

List all traditional IRA, Roth IRA, 401(k), and 403(b) accounts, including the financial institution, account balance, and account type. Must
Confirm the RMD start age that applies to you under current IRS rules and calculate or verify your annual RMD amount for each traditional account. Must
Review beneficiary designations on all retirement accounts and update them if life circumstances have changed. Must
Assess whether a Roth conversion strategy is appropriate given your current versus anticipated future tax bracket — discuss with a tax adviser. Nice to have
Consolidate old workplace retirement accounts where administratively practical to simplify RMD tracking and portfolio oversight. Nice to have

Tax Situation

Identify which of your income sources are fully taxable, partially taxable, or tax-free at the federal level — Social Security taxation depends on combined income. Must
Verify whether your state taxes Social Security benefits, pension income, or IRA withdrawals, as state rules vary widely. Must
Confirm that you have sufficient federal income tax withholding or estimated quarterly tax payments in place to avoid underpayment penalties. Must
Review your income in relation to IRMAA thresholds if you are enrolled in Medicare, since higher income triggers higher Part B and Part D premiums. Should

Additional Income Sources and Documents

Document any other recurring income — rental income, part-time work, annuity payments — and note how each is taxed. Must
Ensure your estate planning documents (will, durable power of attorney, healthcare directive) are current and accessible to your trusted contacts. Should
Store copies of key documents — Social Security card, pension award letters, IRA account statements — in a secure and accessible location. Should

Tools You Will Need

Before you begin, gather the documents and access credentials listed below. Having everything in one place reduces interruptions and helps you complete each section accurately.

Required

my Social Security Account (ssa.gov)

Access your earnings record, projected benefit estimates, and Social Security statements.

Required

Pension Benefit Statement

Confirms your accrued monthly benefit amount, elected payment option, and beneficiary on record.

Required

Recent IRA and 401(k) Account Statements

Documents current balances and account types needed to calculate RMDs and review beneficiaries.

Required

Most Recent Federal and State Tax Returns

Establishes a baseline for your current taxable income and any estimated tax payment obligations.

Optional

IRS Publication 590-B

Provides official IRS guidance on distributions from IRAs, including RMD tables and rules.

Optional

Medicare Summary Notice or Plan Explanation of Benefits

Helps cross-reference your current Medicare premium tier against your income for IRMAA review.

Understanding the Rules That Govern Your Accounts

Several rules apply automatically once you reach certain ages or account thresholds — and the consequences of missing them can be steep. Required Minimum Distributions (RMDs) from traditional IRAs and most employer-sponsored plans must begin by a specific age set by the IRS. To understand exactly how amounts are calculated and what a missed deadline can mean, review the rules retirees often misunderstand about RMDs.

Missing an RMD Carries a Steep Penalty

The IRS imposes an excise tax on the amount that should have been withdrawn but was not. This tax is a significant percentage of the shortfall, though the IRS can waive it in cases of reasonable error. Always verify your RMD deadline and amount with your plan administrator or a qualified tax professional — do not rely solely on informal estimates.

Medicare premiums at higher income levels are subject to Income-Related Monthly Adjustment Amounts (IRMAA), which means your retirement income decisions can directly affect your healthcare costs. This connection between income planning and benefit costs is explored further in the end-to-end retirement income guide.

Once you have completed this checklist, consider pairing it with the annual benefits review checklist to confirm your Medicare and assistance program eligibility stays current each year.

Beneficiary Designations Override Your Will

The beneficiary named on a retirement account or pension form controls who inherits that asset — regardless of what your will states. Outdated designations, such as a former spouse or a deceased individual, can redirect assets in ways you did not intend. Review all beneficiary designations as part of this checklist and after any major life event.

This article is for general informational purposes only and does not constitute personalised financial, tax, legal, or investment advice. Consult a qualified financial adviser, CPA, or attorney regarding decisions specific to your situation.