From what sources will you receive your income?
There are many income resources that retirees use to fund their retirement, including:
- Employer-sponsored defined contribution plan savings, including 401(k), 403(b) and 457 plans
- Individual Retirement Accounts (IRAs)
- Social Security benefits
- Work-sponsored pension (defined benefit) plans
- Personal savings and investments
- Home equity
- Part-time work
Retirees have customarily relied on employer-sponsored retirement plans, Social Security and personal savings to fund their retirements; this is referred to as the three-legged stool of retirement savings. For many workers, retirement accounts such as defined contribution plans and IRAs have replaced traditional pension plans. You should review all the options available to you so you can take full advantage of each.
