Funding Retirement
From Personal Finance
There are numerous ways of funding retirement by planning in advance. For most of the Twentieth Century, retirement funding was approached through the three-legged stool of government benefits (i.e. Social Security), employer-sponsored defined benefit plans (pensions), and personal savings.
[edit] Sources of Income
- Personal savings
- Government benefits: These include Social Security and pensions
- Employer-sponsored defined benefit plans
- Selling assets: After children move out, many people no longer need a large house. Rather than continue to maintain and pay taxes on it, they sell it and buy a condominium or rent an apartment, keeping the price difference.
- Children: Many people are supported by their children in old age.
- Parents: Although one can live in retirement off a parent's estate or life insurance, advisors strongly discourage relying on this. If the parent does not die as soon as expected, resentment can occur.
- Charity
