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View Poll Results: Which source provides the most retirement income for you?
Defined benefit plan, traditional pension 54 40.91%
Defined contribution plan, IRA, 401k, 403b etc 26 19.70%
Other taxable investments 41 31.06%
Real estate, reverse mortgage, rental income etc 4 3.03%
Social security 6 4.55%
Part time work, lets say less than 20 hours a week 1 0.76%
Voters: 132. You may not vote on this poll

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Old 11-17-2011, 12:16 PM   #21
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All of my income comes from a pension. Currently saving and investing in an attempt to create another leg for my one legged retirement stool.
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Old 11-17-2011, 12:23 PM   #22
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Originally Posted by rescueme View Post
And assuming they are not Roth's, they will also be taxable ...

Try reading the choices in the poll.........
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Old 11-17-2011, 01:21 PM   #23
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My pension has turned out to be my biggest source of income. Since I retired in March my taxable withdrawal each month has averaged 73% of the amount of my pension which has been a pleasant surprise.
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Old 11-17-2011, 01:47 PM   #24
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Does the low proportion of DC plans mean that they haven't been a good way to invest for retirement? Do you think that the rate of people ERing will go down as DB plans disappear?
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Old 11-17-2011, 02:00 PM   #25
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Does the low proportion of DC plans mean that they haven't been a good way to invest for retirement? Do you think that the rate of people ERing will go down as DB plans disappear?
It may mean many of the retired people answering the poll predate DC plans, so they had some combination of DB or taxable savings. A younger group, say people in their 40's, might show a more reliance on tax deferred options like DC or 401(k).
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Old 11-17-2011, 02:08 PM   #26
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My pension provides all of my retirement income and I plan to delay any withdrawals from my Roth or TSP for a few years.
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Old 11-17-2011, 02:13 PM   #27
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It may mean many of the retired people answering the poll predate DC plans, so they had some combination of DB or taxable savings. A younger group, say people in their 40's, might show a more reliance on tax deferred options like DC or 401(k).
Yes, the changing options for retirement saving will obviously see DB plans reduce in their proportion, but I wonder if that will be accompanied by a reduction in the number of people who can afford to ER. Given the dire level of retirement saving today IMHO out little ER community isn't going to be growing, if anything it will get smaller.
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Old 11-17-2011, 02:22 PM   #28
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I'm interested to see where ER folks get most of their income. I haven't ERed yet, but when I do about 65% of my earnings will be from various defined contribution plans. Once I reach the official retirement age various social security plans will probably provide most of my income.
By definition, early retirement means that several of these poll options are off the table or subject to penalty at first.

So until official retirement age, my ER income comes from taxable investments.
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Old 11-17-2011, 03:15 PM   #29
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By definition, early retirement means that several of these poll options are off the table or subject to penalty at first.
I agree. Odd result for a early retirement forum.
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Old 11-17-2011, 03:33 PM   #30
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I consider myself Early Retired at age 55 which means I have penalty free access to IRA's and 401k's.

However, 70% of my income is from pensions and the rest from after tax investments, as I don't choose to do 72(T) distributions.

Since the pensions are fixed then that balance will shift as the years progress.
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Old 11-17-2011, 03:39 PM   #31
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In the interests of following a scrupulously prudent and cautious approach to retirement, I think it's good to point out that some of us may wish to plan income from three or more of the listed sources in retirement in case one falters. So, the list provided of potential income sources could also be useful for those beginning to plan retirement, too.

Right now my largest income stream is from my portfolio earnings/dividends.
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Old 11-17-2011, 03:44 PM   #32
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Yeah, I was kinda surprised to see DB as the highest percentage. Perhaps that will change somewhat as others post.

Honestly, from the posts I read here on the forum, my impression was that DB's were relatively rare or at least small contributors to the ability to RE. I've even gotten the impression that there is sort of a "purist" attitude by those without DB. i.e., "We made it by saving and investing - not by the luck of having a DB." No offense intended, but just an observation which may or may not be accurate - looks like it is NOT accurate, in fact.

I will say, when I retired, I had planned that my DB would be my largest source of income, but my cash burn due to moving to paradise has changed things around a bit. My 401(k) has turned out to be my biggest source with DB a not too distant second place. Fortunately, my backup plans have allowed this with little fear of going broke anytime soon. My other backup is my share of SS (DW already take hers on her record). When that kicks in (age 70?), I'm thinking DB may slightly edge out all the others. Of course, since my DB is not COLA'd, it will always be a smaller and smaller piece of the pie. YMMV
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Old 11-17-2011, 03:53 PM   #33
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For me, as of now, it's my investments that produce the most source of income. In otherwords, if Mr. Stock Market goes up, I get a raise for the year. If down, I get a paycut.
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Old 11-17-2011, 03:55 PM   #34
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Not retired yet, but I always figured most would come from pensions. What surprised me was the percentage ranged from 60-85% over the projection. The IRA is the next largest % for the first few years, until other income streams come online. After that, it's basically there to cover inflation.
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Old 11-17-2011, 03:57 PM   #35
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By definition, early retirement means that several of these poll options are off the table or subject to penalty at first.

So until official retirement age, my ER income comes from taxable investments.

+1 same scenario
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Old 11-17-2011, 04:02 PM   #36
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SS is initially off the table for ERers, but there may be some LBYM folks who retired before SS age, but for who it's now the biggest income source. If we define ER as any age before 62 ( earliest you can get SS) then all the other options are in play. Many can access their 401ks or DB plans penalty free at 55 and there is always the 72t
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Old 11-17-2011, 05:06 PM   #37
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Does the low proportion of DC plans mean that they haven't been a good way to invest for retirement? Do you think that the rate of people ERing will go down as DB plans disappear?
After seeing the difference between the new cash balance plan and the old DB plan, which I was grandfathered into, I personally think the younger people I worked with have a snowballs chance in you know where to retire early.
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Old 11-17-2011, 05:23 PM   #38
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After seeing the difference between the new cash balance plan and the old DB plan, which I was grandfathered into, I personally think the younger people I worked with have a snowballs chance in you know where to retire early.
If I had cash balance instead of DB, I know I would still be working. 1) I had 14% taken out of my check and it was matched, I sincerely doubt I would have had the self discipline to have invested 14% net alone, the true 28% I would have had to have done. 2) Im sure I wouldnt have spent the proper time to research all necessary angles needed to maximixe my investments 3) Im reasonably sure I would have been one of those panic " sell low" " buy high" investors. The true ER person who achieved this by LBYM and investing saavy without a DB, is certainly one to be admired.
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Old 11-17-2011, 07:49 PM   #39
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Surprised 0%, i.e. no one, is from real estate investments.

Though I guess most with rental income it would be a supplement, not the main income. And there are those that say you can't be retired if you own rentals.
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Old 11-17-2011, 07:53 PM   #40
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Not retired quite yet but the plan is:
39% defined contribution plan (transferred into Vanguard funds at retirement)
33% defined benefit plan (probably taken as annuity or lump then annuitized)
28% social security (taken at 62 to let retirement portfolio grow more)
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