Income

About Income

Retirement income is the money you receive from various sources during your retirement years. It's important to plan for retirement income, because you will no longer be receiving a regular paycheck from employment. There are several sources of retirement income, including:

Social Security: Social Security is a government-provided retirement benefit for workers who have contributed to the program through payroll taxes. The amount you receive from Social Security will depend on your work history and earnings.

Pension: A pension is a regular payment that you receive from an employer or other organization after you retire. Pensions can be defined benefit plans, which pay a fixed amount based on your salary and years of service, or defined contribution plans, which depend on the contributions you and your employer make to the plan and the investment returns earned.

Personal savings and investments: Retirement income can also come from the money you've saved in personal savings accounts, such as a traditional or Roth IRA, or from investments in stocks, bonds, mutual funds, or other securities.

Part-time work: Some people choose to work part-time during their retirement years to supplement their other sources of income.

It's important to consider all of these sources when planning for retirement and to consider factors such as inflation, which can erode the purchasing power of your retirement income over time. A financial advisor or planner can help you create a retirement plan that takes into account your specific needs and goals.