HerMoney with Jean Chatzky
Ep 511: From Nest Egg to Paycheck: Rethinking Retirement Planning
Date: January 21, 2026
Guest: Christine Benz — Director of Personal Finance and Retirement Planning, Morningstar
Main Theme: Transitioning from retirement saving to income, psychological and practical challenges, and especially how these impact women.
Episode Overview
In this first installment of HerMoney’s ongoing retirement series, Jean Chatzky welcomes back Christine Benz to demystify one of the most intimidating shifts in retirement planning: turning savings into a lasting income stream. With warmth, honesty, and humor, they break down the emotional and financial complexities of retirement—especially for women. The conversation covers the variety of strategies for distributing retirement income, the unique challenges women face (such as longevity and caregiving), psychological hurdles to spending, budgeting approaches, the evolving role of annuities, and actionable steps for getting retirement-ready.
Key Discussion Points & Insights
1. No One-Size-Fits-All Approach to Retirement Income
[00:58]–[06:55]
-
Christine Benz underscores the central theme of her book "How to Retire":
“There’s no one clear answer about how to do any of this. People are all over the place in terms of what your portfolio should look like as retirement approaches.” — Christine Benz [04:13]
-
Approaches vary widely, from focusing on annuities (guaranteed income) to maintaining control through portfolios of dividend-paying stocks.
-
Psychological fit matters as much as mathematical precision:
“The retirement income approach that makes sense for us is really the one that fits with us psychologically.” — Christine Benz [00:58]
2. Importance of Non-Financial Retirement Planning
[06:55]–[09:27]
-
Christine reveals that the biggest surprise in writing her book was the undervalued role of planning for purpose, routine, and social connection post-retirement:
“You shouldn’t just show up in retirement without a plan for what you’re going to do with your days…Those are the things that really contribute to whether someone’s satisfied in retirement or not.” — Christine Benz [06:55]
-
Money is necessary but not sufficient; life satisfaction depends on meaning beyond finances.
3. The Psychological Challenge of Decumulation
[09:27]–[12:45]
-
Initiating spending from accumulated savings is daunting for many, especially lifelong savers.
“If we have been successful as savers and we’ve seen our investments grow, we all want to kind of anchor on that high water mark…I personally will feel badly…when my portfolio starts to fall below what it is today.” — Christine Benz [09:27]
-
Practical tip: “Warm-up” to spending by making planned withdrawals for big purchases before retirement hits.
-
People are more comfortable spending income streams that arrive regularly (Social Security, annuity payouts, dividends), compared to occasional portfolio sell-offs:
“…retirees tend to feel a little bit more comfy spending certain types of income than they do others.” — Christine Benz [09:27]
4. Retirement Planning Is Different for Women
[15:55]–[18:56]
-
Women live longer, are more often caregivers (for both children and parents), and experience more interruptions or earlier peaks in their earning years.
“There’s a longevity edge for us…And then the other big thing…is the role of caregiving in terms of women’s earnings trajectories.” — Christine Benz [15:55]
-
Jean’s key advice for women needing to care for parents:
“Even if it takes every cent that you make, the greater good is staying in the workforce if you possibly can…It’s super hard to get back in realistically.” — Christine Benz [15:55 paraphrasing Jean]
-
Leaving the workforce late in one’s career accelerates withdrawals, shrinks savings, and impacts Social Security timing.
5. Common Blind Spots in Retirement Preparation
[18:56]–[22:10]
-
Fewer than a third of people aged 45–75 have a detailed retirement plan.
-
Many overestimate safe withdrawal rates (confusing 10% with the more realistic 3–5% ranges).
“I think there’s a lot of confusion about safe withdrawal rates…that’s one area where some sort of planning advice…can really help.” — Christine Benz [20:25]
-
Under-spending can also be an issue for retired individuals who become overly cautious.
6. Budgeting: From Reverse Budgeting to Pre-Retirement Clarity
[23:00]–[26:48]
-
Christine and Jean discuss “reverse budgeting”—paying yourself first (savings/investments), then freely spending what’s left.
-
As retirement nears, it’s still important to dig into spending categories, especially discretionary versus fixed expenses, to better forecast needs.
-
On sharing budgets with partners:
“But I don’t think either of us have spent much time scrutinizing the other’s spending, and it does tend to contribute to marital harmony.” — Christine Benz [26:12]
-
Humorous anecdotes highlight how personal and occasionally fraught money tracking can be in couples ([26:48]).
7. Annuities & Their Increasing Role
[27:24]–[29:44]
-
The term “annuity” covers a wide range of products—not all fit neatly with stocks, bonds, or cash.
“The troubling part with annuities is that the term is so encompassing…Some of which do encompass stock exposure, some of which are just pure income producing vehicles.” — Christine Benz [27:59]
-
Growing trend: Employers adding annuity options to retirement plans (Vanguard, BlackRock). This could offer more security and possibly better vetting for retirees.
“When people retire, they're much more inclined to stay inside the plan during retirement than they were even 10 years ago.” — Christine Benz [29:44]
8. Pros and Cons of Staying in Retirement Plans
[31:28]–[32:15]
- Many retirees stick with their 401ks due to inertia and perceived security.
- Not all 401ks are equal—retirees should assess investment options before staying out of habit.
9. First Steps for the Overwhelmed Pre-Retiree
[32:35]–[34:21]
-
Christine’s top advice:
- Inventory all income sources (run your Social Security statement; tally investment accounts).
- Use the 4% rule as a rough guideline to estimate portfolio withdrawals.
- Compare combined income to your estimated retirement budget.
- Seek advice, even just a check-in with a pro, to get comfortable and make necessary adjustments.
“Get over that fear that you’ll be judged. I don’t think you will be.” — Christine Benz [34:21]
Notable Quotes & Memorable Moments
-
On Psychological Fit:
“The retirement income approach that makes sense for us is really the one that fits with us psychologically.” — Christine Benz [00:58]
-
On Underrating Non-Financial Aspects:
“Unless you give thought to what you’re going to do with your time and what’s going to give you purpose, I don’t think money is the be all end all.” — Christine Benz [06:55]
-
On the Spender’s Mindset:
“I get the intuition…dividends tend to be appealing because someone’s mailing you a check…It just feels better than telling your account provider that you want to sell a chunk of something.” — Christine Benz [09:27]
-
Advice for Women Caregivers:
“Even if it takes every cent that you make, the greater good is staying in the workforce if you possibly can.” — Christine Benz referencing Jean [15:55]
-
What Should You Do First If Overwhelmed?
“Get your arms around all of your income sources or potential income sources…do a little bit of quick and dirty calculation using the 4% guideline…” — Christine Benz [32:35]
-
Marriage and Money Humor:
“He wanted to buy pants…Not for me. Right. And we have very different attitudes towards shopping for these things…But I don’t particularly want to share it [the budget].” — Jean Chatzky [25:14], [26:12]
Timestamps for Important Segments
- [03:42] — Christine Benz joins the show: the true complexity of retirement planning.
- [06:55] — Underappreciated importance of life purpose and connection in retirement.
- [09:27] — The psychological hurdle of spending from your nest egg; “practicing” with withdrawals.
- [15:55] — Gender differences: longevity, caregiving, and earnings disruption for women.
- [20:25] — Safe withdrawal rate confusion and need for early planning.
- [23:00] — Reverse budgeting and evolving budgeting practices in pre-retirement.
- [27:24] — The changing role and categorization of annuities.
- [29:44] — Retirement plans adding annuities and why more retirees are staying in-plan.
- [32:35] — Christine’s essential first steps for overwhelmed pre-retirees.
Resources Mentioned
- Christine Benz’s book: How to Retire: 20 Lessons for a Happy, Successful and Wealthy Retirement
- Christine’s articles & videos: Morningstar.com
- Christine’s podcast: The Long View
- Retirement planning tools: LIMRA’s Resources (Consumer tab)
- HerMoney’s Investing Fix: Women-only investment club
Recommended Actions for Listeners
- Take inventory of income sources and retirement accounts as early as possible.
- Understand the safe withdrawal rate, avoid both over- and under-spending.
- Address both financial and non-financial aspects of retirement—don’t underestimate the need for purpose and social connection.
- Consider how caregiving responsibilities might disrupt your timeline or savings—especially relevant for women.
- Seek professional advice to stress-test your plan, and don’t wait until it’s almost too late.
This episode is especially valuable for women approaching retirement, offering candid advice, humor, and compassionate reassurance that while there is no single perfect path, there is a plan—and a support system—for everyone.