What are the Types of Retirement Income Sources
We should all plan for financial security during retirement. However, there are many types of retirement income. For most people, a secure retirement requires multiple income sources. By understanding the types of income, you can plan your retirement better. This post will cover some of the common sources of income for retirees.
Downtown Austin Real Estate Market Watch
As of July 2023, the median list price per square foot of homes in Downtown Austin was $895. Please note that real estate data changes daily. If you want to buy a home in Downtown Austin, please click here to contact our team.
Types of Retirement Income Every Person Should Know
Social Security
Social security is the most common type of retirement income. Most people pay into social security through payroll taxes. However, the self-employed pay directly to the IRS. The benefits from social security are adjusted annually for inflation. An individual’s benefits will also depend on their income when working. However, you can check your benefits by viewing your social security statement.
Pensions
A pension is a defined benefit plan offered by an employer. In general, pensions offer monthly benefits. The amount you’ll receive will depend on your earnings and how many years you were employed. Pensions are a traditional retirement income source only offered by a few employers. Most employers shifted to offering retirement accounts instead of pensions.
Employment
One great way to increase your retirement income is to have a part-time job. You’ll find many jobs suitable for retirees. You might do part-time consulting work in your previous profession. Many retirees take seasonal work. Beyond making money, part-time work can be a way to stay busy.
Investment or Savings
Having investments or savings accounts is an excellent source of retirement income. Some examples of investments for retirees are bonds, dividend-paying stocks, and real estate. Aside from these, it’s also ideal to prepare an emergency fund. An emergency fund can ensure you won’t have to sell investments or make emergency withdrawals from retirement accounts.
Defined Contribution Plans
Defined Contribution (DC) Plans like 401(k)s or 403(b)s are also known as employer-sponsored retirement plans. Employees contribute a certain amount of their paychecks to the accounts. Some companies or employers may match the employee’s contribution. Depending on the account, it may offer various tax benefits for retirement savings.
We Love Downtown Austin Real Estate!
Are you considering buying or selling a home in Downtown Austin? We’d love to help you! Please click here for our contact page, and we’ll reach out to you promptly.
Would you like to see more great info from Capital Downtown Realtors? Click here for our blog page. Please click here for our “Meet the Realtors” page to learn more about my team.
Thanks for visiting!
