Sources of Retirement Income

Just about everyone wants a comfortable retirement. But will you have the money you need when you reach retirement age?

• Social Security Social Security was never intended as the sole source of retirement income, and you may need more than Social Security provides. Each year, Social Security sends a statement with your personal benefit projections. You can request additional statements anytime at Social Security Administration or by calling 1-800-772-1213.
• Savings You probably have some money saved for emergencies. But what if you had to dip into your savings each month for groceries, rent, or car payments? How long would it take before your savings were gone? Remember that your retirement may last for 10, 20, or even 30 years or longer!
• Retirement Plans If you’re regularly setting money aside in a retirement plan, you may enjoy a number of benefits, including pretax deductions and tax-deferred accumulation. If your employer provides matching contributions, they may add to the amount you set aside.
• Other investments The IRS sets limits on how much you can set aside in your retirement plan at work. But there’s no limit on how much you can invest in taxable investment accounts. To help reach your retirement goals, you may want to consider both types of investments.

Continuing to work Few people want to work after they retire, but if your monthly expenses are greater than your retirement income, you may have little choice. Advance planning may be the best way to realistically pursue your retirement goals.