Savings, Income and Lifestyle: Keys to Retirement Income Planning
For many, the retirement equation appears complicated and overwhelming. Thankfully, at the most basic level, it comes down to just three relatively straightforward buckets: savings, income and lifestyle.
Income for pre-retirees is the paycheck you receive from your employer or business, and the money earned from investments. Social security also falls into the income category upon retirement, but with one important benefit – you will continue to receive it for the rest of your life. That’s why it is called protected lifetime income. Other forms of protected lifetime income include pensions (for those lucky enough to have one) and annuities. Protected lifetime income streams are particularly important for retirement planning, since you will no longer receive regular paychecks from your occupation.