Many living on a fixed income with no future increases to income are likely to face financial hardship down the retirement road. On the other hand, those who established an annual income budget fortheir retirement years and adjusted their cash flow needs to address the multitude of retirmenet pitfalls many retirees face, will live to see another day. Successful cash flow planning in retirement often resembles phased income planning to addresses several phases of retirement income needs. For example, you are likely to require less income in your first year of retirement than you will in late retirement simply due to inflation and future health care costs. It is critical here to plan the work and work the plan.