Income in Retirement
October 13, 2022
This month we continue our discussion of different retirement concerns that you do not have to fear. This week, we are focusing on retirement income!
Running out of money in retirement is a top concern for many people, and for good reason. Once you are no longer working, you will have to find ways to replace your income. Because everyone’s situation is different, it’s important that you plan ahead to help make sure you can cover all your expenses. Here are some of the common sources of income in retirement you should explore:
Social Security
“For many, Social Security will be a vital—and significant—source of retirement income. Unlike most sources of retirement income, Social Security benefits are adjusted periodically for inflation.”1
Defined Benefit Plans
“If you have a defined benefit pension, you should know before you retire about how much pension income you’ll receive.” 1
Defined Contribution Plans
“Employer-sponsored retirement plans—such as 401(k)s, 403(b)s and 457s—are the best-known defined contribution plans. Other plans that generally cater to small businesses are SIMPLE IRAs and SIMPLE 401(k)s and Simplified Employee Pension (SEP) IRAs.” 1
Home Equity
“Your home is also a potential source of retirement income. If you own your residence outright, or have built up significant home equity, two of the most common ways to use your home to provide retirement income are to sell it or obtain a reverse mortgage.” 1
Stocks and Mutual Funds
“Many people gradually shift to more conservative investments as they approach retirement. You may want to keep some of your savings in the stock market in retirement to ensure continued growth in your portfolio and to keep up with inflation.”2
Part-Time Work
“Continued employment can make up for a lack of retirement savings, allow you to afford a few retirement luxuries and provide opportunities to socialize.”2
The thought of no longer having a steady paycheck can be a scary one, but there are many different options you have when it comes to income in retirement. You deserve to experience retirement without worrying about how you will be able to afford it – that’s why we are here to help you plan!