3) Evaluate Income Resources
About half of the income for today's average retiree comes from Social Security and employer pension plans. The remaining amount comes from personal savings and earnings.*
Where will your income come from?
As you inventory your resources, try grouping them into these major categories:
Guaranteed income sources. There are only three sources of income guaranteed to continue for life: Social Security, an employer pension plan (if you're fortunate enough to have one) and annuities. Annuity guarantees are based on the claims-paying ability of the issuing insurance company.
Part-time/one-time income. Don't forget about rental income, part-time work or one-time asset sales.
Personal savings and investments. Under this category, is your 401(k) or any other employer-sponsored retirement plans, IRAs, bank savings, mutual funds, and individual securities you plan to use for retirement income.
* Social Security Bulletin, Vol. 68, No. 2, 2008 – Composition of total retirement income – retired beneficiaries ages 64-66 in 2005.