Most Common Ways to Fund Retirement

10:33 pm Retirement Planning

eggs in basket Most Common Ways to Fund RetirementResearch shows that a majority of Americans will fund their retirement through a variety of different resources; here are the most common ways to pay for your retirement:

Social Security – the most common form of retirement income; research shows 83 percent of Americans will count on it to fund the major portion of their retirement income.

Retirement savings accounts – 81 percent of retirees have an IRA, 401(k) or other retirement savings account, but only one-third say withdrawals from these will fund a majority of their retirement.

Pension – nearly half of retirees count on a private pension as a significant retirement income source.

Home equity – you can use the equity in your home to help fund your retirement by moving to a smaller home or condo, or taking out a reverse mortgage.

Stocks and mutual funds – a Gallup survey found that about one-third of retirees will count on the performance of stocks and mutual funds to fund their retirement.

Part-time job – while many people say they plan to work part-time in retirement to get some extra cash and because they enjoy working, only about 29 percent of retirees today have part-time jobs.

Savings accounts and CDs – one-quarter of retirees get the majority of their income from savings accounts and CDs, and another 50 percent list these as a minor contributor to retirement income.

Annuities and insurance plans – less than 20 percent of retirees say they get a significant portion of their income from these financial products.

Inheritance – approximately six percent of retirees list an inheritance as the source of a major part of their income.

For help in making good decisions on how you will fund your retirement, contact our Newport Beach estate planning law firm.

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