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Identifying Income Sources Introduction For most people, retirement income comes from a combination of four sources. When you look at each of these sources together, they form a retirement income "pie." The first two sources, pension plans and Social Security, are paid to you in retirement as a monthly income based on your years of service, compensation level and retirement age. The second two sources are determined by how much you save during your working years and the investment decisions you make. Each individual slice of the pie will be different for each member. Pension plans: You will need to determine howmuch you will receive from your defined-benefit plan if you have one. Please contact your employer to find that information. Social Security: Each year Social Security sends a benefit estimate to those over the age of 25. This is called the Personal Earnings & Benefit Statement (Form SSA 7004). If you do not have that statement you may run a rough estimate online with Social Security. The Retirement Planning Quick Report will estimate this benefit for you. Tax-Qualified Plans: Your employer-sponsored tax-qualified plan is a fundamental building block of a successful retirement plan. These plans allow you to save for retirement on a pre-tax basis (payroll deducted) with the assets growing tax deferred.* These plans are the most powerful way to save for retirement and can also reduce your current taxes. For more information on your tax-qualified plan, contact your employer. Personal Savings & Investments: This category represents the money you have saved and accumulated over the years. This would include bank accounts, savings accounts, mutual funds, Individual Retirement Accounts (IRAs) and other investments. To learn more about types of investments, refer to the Investment Types Course. * Income taxes are payable upon withdrawal. Federal widthdrawal restrictions and tax penalties may apply to early withdrawals. < PREVIOUS NEXT > #38599