Retirement planning isn’t just about how much clients have saved—it’s about how they’ll spend it. And yet, too often, advisors start with products and spreadsheets instead of starting with the conversation that matters most: What income do you need to feel secure, and what income do you want to enjoy life?
Two simple frameworks—Tom Hegna’s Paychecks & Playchecks and the M.U.G. Test from the Alliance for Lifetime Income—can help you reframe every retirement income conversation into something clients understand, remember, and trust.
Here’s how you can set the stage in a way that gets clients talking:
👉 “When you think about retirement, what does it look like? Where do you see yourself living? What do your days look like? What do you want to be doing?”
Once they’ve painted that picture, you can guide them further:
👉 “If you decided to retire today, about how much income would it take each month to make that vision real?”
Emphasize that you’re just looking for ballpark numbers. Clients don’t need to know the exact dollar amount for groceries or gas—it’s about getting them thinking in terms of income, not assets. That sets up the next conversation without bogging them down in details.
From there, you ask:
👉 “How much of that is already covered by protected lifetime income?”
Protected lifetime income is guaranteed, contractual income that clients can count on every month for as long as they live—no matter what happens in the markets.
There are only a few true sources:
Social Security (government promise)
Pensions (employer promise, if they’re lucky enough to have one)
Annuities (private insurance company promise)
Advisor talking point:
👉 “The idea is simple: make sure your protected lifetime income covers your essentials. Then we can use the rest of your savings for flexibility, growth, and lifestyle.”
M.U.G. stands for Mortgage, Utilities, and Groceries—the non-negotiables.
A simple client question:
👉 “If your paycheck stopped tomorrow, how would you cover your M.U.G. in retirement?”
This grounds the entire conversation. Before talking about growth or upside, you’re showing clients how to cover the basics no matter what happens in the market.
Think of paychecks as the guaranteed income that covers M.U.G. expenses.
Social Security: The first layer for everyone.
Pensions: If they’re fortunate enough to have one, that’s layer two.
Annuities: When those two fall short (and they usually do), this is where you step in.
Products like SPIAs, DIAs, or FIAs with strong income riders can fill the gap, guaranteeing the essentials are covered for life.
Advisor talking point:
👉 “Our first priority is making sure your mortgage, utilities, and groceries are covered with guaranteed income. That way, no matter what happens in the market, your lifestyle stays intact.”
Once the basics are secured, clients can relax. That’s when you introduce the playchecks—the income that funds travel, hobbies, family gifts, or that “someday” lifestyle money.
Here, flexibility and growth come into play:
FIAs with roll-up or step-up features
Performance-based income riders
Growth-focused FIAs that convert to income later
Advisor talking point:
👉 “Playchecks are about freedom. Once we’ve covered the essentials, we can design income for the fun side of retirement—travel, hobbies, and family—without risking your security.”
Here’s where many advisors get tripped up: not every client needs the same income plan.
Some must maximize every dollar just to cover M.U.G.
Others have the flexibility to use specialized tools to carve out discretionary income.
Your role is to tailor the approach—showing clients that it’s not about tearing down what they already own or drowning them in product details, but about fitting the right strategy to their unique retirement picture.
Start with vision. “What does retirement look like?” leads naturally to a ballpark income figure.
Educate first. Teach clients about the difference between paychecks and play-checks, and run the M.U.G. test before you ever mention a product.
Focus on protected lifetime income. Social Security and pensions are the starting point; annuities make up the gap.
Keep it simple. Clients remember concepts, not caps and spreads.
Build trust. When clients see you care about essentials first, they’ll trust you with the rest.
If you want to stand out in retirement income planning, don’t start with product specs. Start with the framework clients get.
Cover the M.U.G. with protected lifetime income paychecks.
Layer on playchecks for lifestyle and flexibility.
Use annuities to fill the gap where Social Security and pensions leave off.
Lead with education, not contracts. When clients understand the plan, they trust you to put the right products in place. And trust is what earns you the business.