Retirement Income
RetirementGlossary term
Definition
Money received during retirement from various sources including Social Security, pensions, retirement account withdrawals, annuities, and investment income. Planning for multiple income streams helps ensure financial security throughout retirement.
Related terms
- Social SecurityA federal program providing retirement, disability, and survivor benefits funded through payroll taxes. Retirement benefits are based on your 35 highest-earning years and the age at which you begin collecting. Full retirement age ranges from 66 to 67.
- Safe Withdrawal RateThe percentage of a retirement portfolio that can be withdrawn annually with minimal risk of running out of money. The commonly cited 4% rule suggests withdrawing 4% in the first year and adjusting for inflation each year after.
- AnnuityA financial product that provides a guaranteed income stream, typically used for retirement. You pay a lump sum or series of payments, and receive regular payments for a specified period or for life.
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