Most people, up until the point of their retirement generally are able to live off the wages earned from employment. However, when you retire it is now time to start living off of the income you have set aside for your retirement income flow. In other words, it’s now time to live off of the savings you have accumulated to replace the wages you can now no longer earn.
There is a three-legged stool which generally will provide the sources for retirement income: Individual Savings, Business Sponsored Retirement Plans, and Social Security.
Individual savings in general have been dropping steady for the past several years. We live in a society which is mostly focused on today and living for the now. Many choose not to think about the reality, that one day, they will not be able to or eligible to work. Instant gratification rules, instead of a disciplined lifestyle of savings. Going forward, the majority of retirement income will ultimately come from one leg of the stool – individual savings. We must work diligently to understand how to save and invest our money today, for a better tomorrow.
Retirement Planning Solutions is prepared to help you navigate the complex aspects of retirement income planning.