What types of income can you use in retirement to support yourself?
Retirement income can be used to support oneself in a variety of ways. The most common types of income used in retirement are Social Security, pensions, annuities, investments, and part-time employment. Social Security benefits are an important source of retirement income available to individuals over the age of 62.
Pension benefits, which are typically based on years of service and salary, are also a common source of retirement income. Annuities are payments made to individuals as a lump sum or a series of payments, usually until death. Investments, such as stocks, bonds, mutual funds, and real estate can also be used to generate retirement income.
Finally, many retirees opt for part-time employment, particularly if they want to stay active and engaged in the workforce. Employment income can be earned from working at a business, consulting, or providing freelance services. Each of these income sources can provide financial security in retirement and it is important to consider which sources are best for each individual situation.
It is also important to discuss retirement goals with a financial advisor to ensure that a strategy is in place to generate the necessary income in retirement.
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