Retirement is a time in a person’s life when they stop working and are no longer a part of the labor force. It is a time to enjoy the fruits of one’s labor, relax, and enjoy life. A person’s income during this time usually originates from various sources, including savings, investments, and retirement accounts like 401(k)s and IRAs. One of the most essential sources of income throughout retirement is Social Security. This government program provides a monthly benefit to retired workers and their families.
Another source of income during retirement is a pension. When a person retires,their employer, usually, makes a regular payment to them called a pension. Pensions are becoming less common, but they can provide a significant source of income in retirement. In addition to these sources of income, many rely on savings and investments to provide income during retirement. Stocks, bonds, mutual funds, and other forms of investment are examples of this. These assets can provide a constant income stream, but they also come with considerable risk.
Overall, Social Security, pensions, savings, and investments are just a few of the sources that can provide income in retirement. People should properly prepare and manage their finances to enjoy a safe and comfortable retirement. This infographic is a visual guide to have a better understanding of these income sources for those heading into retirement.
Infographic Source: https://www.sensibleportfolios.com/blogs/sources-of-income-in-retirement