Sources of Income
Our retirement income planning services consider all sources of income to create a reliable income stream. It’s crucial to evaluate all sources of income and create a diversified portfolio to ensure that you have enough money to cover your essential expenses throughout retirement. There are several sources of income available in retirement, including social security benefits, pensions, annuities, and personal savings. Below we’ve listed a few of the most common sources of guaranteed income.
Social Security Benefits: Social Security benefits are a valuable source of income for retirees. The amount of Social Security benefits you’re entitled to depends on your earnings history and the age at which you start receiving benefits. It’s important to understand how Social Security benefits work and how to maximize your benefits to ensure that you have a reliable income stream in retirement.
Pensions: Pensions are another source of income for retirees. Pensions are typically offered by employers and provide a guaranteed income stream throughout retirement. It’s important to understand the terms of your pension plan and how it fits into your overall retirement income plan.
Annuities: Annuities are insurance products that provide a guaranteed income stream in exchange for a lump sum payment. Annuities come in many different forms, including fixed annuities, variable annuities, and indexed annuities. It’s important to work with a financial professional to evaluate the different types of annuities and determine which is the best fit for your needs.
Personal Savings: Personal savings, such as individual retirement accounts (IRAs) and 401(k) plans, are an important source of income in retirement. It’s important to create a plan to withdraw your savings in a tax-efficient manner and ensure that your savings last throughout your retirement.
Other sources of income can include investments, rental income, employer-sponsored retirement plans, and other assets. To find out how to best accommodate your sources of income to have a solid understanding of your income in retirement, contact one of our fiduciary retirement advisors by clicking the button below.