Women and men both share an uneasiness and worry that they may run out of money during retirement. The dread of becoming the proverbial bag lady doesn’t discriminate.

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Life expectancy has increased and that’s great news; the not-so-good news is that the amount we need to save to fund our retirement and the amount we’ll spend during these years has increased.

When Social Security started in 1937 people lived to an average of 57; today the average is up by over twenty years to 77.8 according to The National Center for Health Statistics.

The desire to maintain an existing lifestyle and not outlive our savings and investment income is a basic. While working we have a regular stream of income. In retirement our paychecks will most likely stop. Even if you have made all the adjustments necessary to enjoy your ideal retirement, this one aspect may be the weakest link: the absence of a paycheck.

Most of us have spent a lifetime expecting regular income to appear in time to pay monthly bills and extraordinary expenses.

COLA, or Cost Of Living Adjustments, has increased an average of 22 percent since 2000. Meanwhile, the cost of basic expenses for food, heating oil, transportation and drugs have increased by 71 percent during the same time period according to The Senior Citizens League research.

The “retirement paycheck” idea is increasingly common because studies have shown that retirees — even those with substantial portfolios — appreciate a dependable income stream.

To be sure, your Social Security check appears monthly, but how can you arrange for your portfolio to begin paying you regularly for the rest of your life?

Even if you are not retired, it may be time to plan how you arrange a money stream.

Arranging a payout

One way to potentially convert your portfolio into an income stream is to put at least some of it into a fixed income annuity (also called an immediate annuity).

If at 65 you were to buy such an annuity for $200,000, you might expect a fixed, lifetime payment of approximately $1,370 a month for the rest of your life. Precise figures depend on your gender, your and your spouse’s life expectancies and other factors related to the options you choose.

Purchasers should be aware that long-term inflation risk may detract from the value of the regular payments and that any guarantee of a fixed, lifetime payout depends solely on the claims-paying ability of the issuing firm.

There are other ways.

1. You may adopt an asset allocation strategy likely to keep your portfolio on track as you age, then devise a regular withdrawal strategy.

2. Bonds that pay regular interest, laddered certificates of deposit that mature and pay on a set schedule, and dividend-paying stocks are other alternatives.

3. Will you withdraw your funds on a dollar-adjusted or a percentage basis? Each has pros and cons.

Set dollar withdrawals adjusted for inflation will provide you with predictable amounts — monthly or annually. Your money has at least a 75 percent chance of lasting 30 years if you take a 4 percent initial withdrawal from a portfolio split 50/50 among stocks and bonds.

Choose the percentage basis and your portfolio is more likely to last your lifetime, but cash flow may decrease dramatically during an extended bear market. For example, if you plan to withdraw 5 percent annually, it may the next year be measured against a shrinking portfolio.

Everyone’s retirement needs are different, and income stream choices will suit some investors better than others. If you have questions as you plan for your retirement income be sure to work with a trusted financial advisor.

Withdrawals prior to age 59 and a half, may be subject to a 10 percent federal tax penalty on the gains. Earnings are taxed as ordinary income upon withdrawal.

Asset allocation does not ensure a profit or protect against a loss.

Dividends will fluctuate and are not guaranteed.

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Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.