10 Sources of Income for Your Retirement
credit: blair christensen
When you’re planning your retirement – and some of us dream about finishing work from practically the first day we start – it can be complicated to think about how you will fund it. A Gallup survey found there are ten main sources of income for retirees, with some being more significant than others. Have a look at the list and consider where your retirement income is going to come from:
- Home equity: either through a reverse mortgage or selling up and moving somewhere smaller.
- Part-time work: probably not what you’re hoping to do, but something many who haven’t saved enough find they have to do.
- Retirement savings account: like a 401(k), IRA or Keogh. Be careful, though, as research suggests many people who rely on these don’t have enough savings there.
- Social Security: in 2006, more than half of the retirees at that time relied on Social Security as their major source of income. But if you can find other sources, you’ll be better off.
- Employer-sponsor pension plan: but these are disappearing.
- Rental income: for those that own additional property, rental income can be a significant financing source.
- Regular savings accounts: also disappearing, and being replaced by more tax-effective savings.
- Stocks and mutual funds: currently the major source of income for about 10% of retirees.
- Annuities and insurance plans: used by a minority of retirees.
- Inheritance: again, a small minority of retirees are lucky enough to inherit money to live off. Don’t rely on it!
Tags: income | inheritance | Insurance | Retirement | savings
This entry was posted on Wednesday, April 2nd, 2008 at 3:35 am and is filed under Retirement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
