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Managing retirement income risk is to prevent running out of money over a long period of time. Social Security will help but may not be enough to cover all essential expenses, especially after inflation.
Relying on income from stocks and bonds does not get less risky with time. In fact, the probability of something going wrong actually increases with the number of periods considered. Good retirement planning should be for thirty to forty years in order to be secure. The journey can be terrifying if income sources are too volatile.
Retirementincome budgeting is usually modeled using high expected returns from risk assets, which has the benefit of suggesting you can save less to become fully funded. It may even propose the same pool of savings can cover retirement, inheritances for the kids, and liquidity for your other needs. This can put you in a dangerously risky position.