The 6 Most Common Retirement Income Sources

[REWahoo]

I'm good for #1 and #2.

Me, too. Although I do take prescription meds to help with #1.

 

[Midpack]

Hmm, Which also makes me think Trust Funds could be a category too, not that I have or will ever have one. But, I used to own an apartment in a MegaCity co-op building where I swear, half the residents (or at least half the ones that bought after me) had trust fund income (not to mention chunky gifts from parents for downpayments). I know because detailed financial disclosures were required to get Board approval to purchase an apt there (and I was on the Board ).

P.S. I loved that apt. Hated being in what amounts to the most invasive form of HOA on the planet. First rule of survival in an HOA - takeover board immediately upon arrival.

A little dated from 2010 but they are rare - "1.3 percent of people who received money in a trust fund" which would make it smaller than any in the video.

While inheritances are more common, they are usually relatively small one time events and I think the YT video considered income streams.

On average, American households inherit $46,200, according to the 2023 Federal Reserve data. But this figure is inflated by top-tier wealth and belies the fact that many households inherit no money at all.

 

[MarieIG]

. . .

• ~100% Soc Sec (not actually but almost)
• 87% Personal Retirement Accts (nest egg accumulated assets)
• 22% Pensions (and continuing to decline)
• 14% Annuities
• 13% Part Time Job Income
• 7% Rental Income

. . .

We are currently using

- retirement accounts (nest egg) for me taxable/ DH is taking limited IRA distributions;

- DH's Pension;

- DH's Annuity.

Future:

SS - both DH and I qualify for SS on our own records;

DH's 401k (which may or may not be rolled over into an IRA);

My IRAs (traditional and Roth);

I have a small annuity.

 

[braumeister]

Not sure when the best time to cash them in will be, but my extensive collection of Hummels, Beanie Babies, and Pet Rocks should provide for a very comfortable retirement.

Right?

 

[MarieIG]

Not sure when the best time to cash them in will be, but my extensive collection of Hummels, Beanie Babies, and Pet Rocks should provide for a very comfortable retirement.

Right?

 

[aja8888]

Not sure when the best time to cash them in will be, but my extensive collection of Hummels, Beanie Babies, and Pet Rocks should provide for a very comfortable retirement.

Right?

Yes, and I forgot to mention my Hamilton plate collections.

 

[Mr. Tightwad]

2, 3 and 6.

 

[PatrickA5]

1 and 2 only for us. Someday, might do a SPIA but probably not.

I do have an oil well with my name on it, but it produces less than $1 per year royalties. I'm always hoping that they'll find a new formation and I'll be rich.

 

[EarlyandLate]

I've paid for nine years of retirement all with #2. Soon I'll start getting a modest pension. It starts automatically whether I want it to or not. In a few years, I'll add SS. So, my three-legged stool will be complete!

 

[f35phixer]

We have SS taken at 62 for both and Pensions.... RMD's for me happen in 5 years.

Quite unbelievable that our monthly take home is 13.5K, after health ins and all other things USG takes....

You wouldn't think that looking at us ;-)

 

[xlf11]

1,2,3

 

[GravitySucks]

Yes, and I forgot to mention my Hamilton plate collections.

And don’t forget inheriting your Uncles coin collection.

 

[O2Bfree]

Four years into FIRE I'm still using only savings and dividends, and am $105k below my projected spend rate.

I'll probably delay SS until 65 to keep getting ACA subsidies, but want to run some numbers on subsidy savings vs. investing SS payments.

Got a micropension of around $400 per month that'll kick in at 65.

 

[jazz4cash]

Yeah, the youtuber lost me when he claimed 100 % get SS. The SSA says 90% of 65 yr olds get SS. My extended family is nearly all gov’t pensioners with no SS. Without knowing the mix of income sources it seems rather useless to me.

 

[harley]

1, 2 5, 6 for us.
1 - Just started DW's SS, mine will wait for 70 (3 more years).
2 - We haven't drawn anything from our IRAs, except for Roth conversions. But we're pretty much out of pre-tax now, so that may start, depending on
5 - small side gig that has turned out to be much more lucrative than ever expected, and
6 - A couple of rental properties that have also done pretty well for us.

 

[lucky penny]

The video makes it clear that "nest egg accumulated assets" means not just IRAs but any kind of personal savings someone has, including brokerage accounts.

 

[Koolau]

1,2,3

DItto

 

[DrRoy]

Taxable investment account 70%
Retirement accounts 0%
Pension 25%
SS 5% Would be 0 but DW filed at 62. I'm waiting for 70.

 

[target2019]

yes. SSA for two, please
yes, SEP-IRA for me
yes, 401(k) accounts now in Rollover IRA
yes, 403(b) account now in Rollover IRA
yes, new 403(b) account
yes, gifts & inherited money in taxable brokerage
yes, her pension
yes, inherited annuities cashed in
yes, P/T Job (hers)
no, Rental Income

We've managed to put more than enough legs on the retirement stool.

 

[retire48in2018]

Only #2 for us, right now.

We’re only 53, so SS is a while

We might trying to sell some items that we have DIY refurbished. So maybe some PT work later.

 

[LateToFIRE]

...and LateToFire, I would never have bought such a place, but then again I avoided both the NY and Cali Bay Area in early career (had companies in either offering) mostly because what either offered didn't seem like anywhere near enough to survive (and I certainly didn't want to be unemployed, and thus possibly homeless in my mind, in either location at that time)

FI_RElater, Trust that our co-op purchase was more necessity than choice. It was the only way to get a toehold in a rabidly expensive housing market, as we didn't have much of a downpayment. A few years later we traded up and out with a crazy gain, and rolled that into a non-HOA place where we could make 100% of the decisions ourselves, and never looked back. Well, except that our old apartment now would sell for about 8x our original purchase price (no exaggeration) and over 3x what we sold it for. Still, not sorry we sold and got out. I would be very hesitant to buy into another HOA-type situation again. Extremely, very.

 

[meleana]

I am 67 and hubby is 69. I retired at 62 and he at 65- closer to 66.
We’ve been living on our bank savings account and a small amount of an RMD from an inherited IRA until my husband starts collecting SS at age 70 next year. I will also wait until age 70 to collect SS. Hope to just live on one SS check and maybe a little from savings if necessary. Depending on what life brings we intend to bank the proceeds after taxes of the RMD’s we are forced to take when we each hit age 73.

 

[TXBev]

Two rentals on my property that fill up fast and Social Security. Rentals can be good income with some tax write offs, if you can do the maintenance yourself. Then IF you have tenants who don't abuse your property. Sold my property, closing soon. After I buy a house, without acreage, then I will be looking for mostly income producing products. Plan to get some DNP utility fund first, pays monthly about 7%, dividend reinvestment available if you want but it is not for growth. Will be studying to find something solid, with income, that has a little growth opportunity. Will study the Aristocrat stock list and take my time. Might look into church bonds.

Would be interested in what other's invest in. Not interested in an annuity. If it's too good to be true...........

 

[mickeyd]

Other.......................3% (Tax credits, government covid money, class action settlements, etc.)

Maybe VA disability payments are stashed here but I think that there are many more veterans who quietly receive monthly cash to help them live.

 

[Koolau]

I am 67 and hubby is 69. I retired at 62 and he at 65- closer to 66.
We’ve been living on our bank savings account and a small amount of an RMD from an inherited IRA until my husband starts collecting SS at age 70 next year. I will also wait until age 70 to collect SS. Hope to just live on one SS check and maybe a little from savings if necessary. Depending on what life brings we intend to bank the proceeds after taxes of the RMD’s we are forced to take when we each hit age 73.

I'm a bit embarrassed to ask, but "then what?" Saving money after age 70 is fine, but what will you do with it? Spend it? Pass it to the next generation? Give to charity?

Sorry, none of my business, but I'm curious.

We saved "too much" before FIRE and are trying to give it to our favorite charities before (and after) we die. The kids will get "some" but not the lion's share.