Donnasoilm

Financing retirement has become more challenging than ever. But the good news is that we have more sources of income than we might at first realize. Here are ten ways that people generate income after they retire. Most people only need three or four to be financially comfortable. 1. Social Security. The average retiree collects about $1,360 a month from Social Security. But many people spend more than that on housing, health care, transportation and food. While Social Security may be part of the equation for financing retirement, it does not provide the whole answer. Your benefit may differ significantly from the average, based on your earnings history and the age you retire. You can retire and collect Social Security anytime between 62 and 70. The longer you wait, the higher your monthly check. 2. Retirement accounts. Take stock of how much savings you have stashed away in an IRA or 401(k) retirement plan. Whatever the amount, you can safely withdraw somewhere between 3 and 4 percent per year to support your retirement lifestyle. Typically, you can start withdrawals, without penalty, at age 59 1/2, and for many plans you must start withdrawals by age 70 1/2 or face penalties. Remember, you may have to pay income taxes on money taken from a retirement plan. 3. Other savings. In aggregate, the bulk of individual savings is invested in IRAs and other retirement plans. But you may also have savings outside of a retirement program. Many experts suggest spending down taxable accounts first, and holding off on IRA withdrawals, since retirement accounts continue to grow on a tax-deferred basis. 4. Pensions. Many of us have seen pension plans fall by the wayside. But some retirees from the private sector and most people from the public sector still collect pension payments. If you held a number of jobs in your career, you should check with old employers about any pension rights you may have. It's also a good idea to research how secure your pension is. Most pensions are well protected, but not all pen

Login to Comment