Retirement finance isn’t a one-trick pony — there are more sources to garner retirement income than you might believe. For proof, look no further than an April Gallup Survey of the 10 top sources of post-career income — and where you might stand on each of those items.
Why check out all of your potential sources for retirement cash? Because in this economy, you can’t leave anything to chance. You have to leave no stone unturned when it comes to tapping every last source of income you can so you don’t have to spend your golden years working at the golden arches.
That could well be the future for a huge number of Americans heading into retirement, but who are fiscally unprepared to do so. According to a separate study by Gallup, this one in 2009, a majority of non-retired Americans, 52%, doubt they will have enough money to live comfortably once they retire. That’s the highest number in 10 years, Gallup reports. It was only eight years ago, right on the heels of Sept. 11 and the recession that followed, that Americans were much more positive. Then, 59% of non-retirees said they would have enough retirement income to live comfortably.
So where does that leave otherwise financially anxious Americans nearing retirement? Hopefully, with a renewed commitment to beef up their savings in any one of the following 10 areas:
Social Security: Not surprisingly, Gallup reports that Social Security is the number one source of expected income in retirement — 54% of Americans call it a "major resource," and 34% of Americans figure it will be their primary source of retirement income.
Inheritance: Very few Americans — 9% — expect that an inheritance will be a major source of retirement income.
Bank savings or CDs: Even with bank interest rates at historic lows (check BankingMyWay.com for the latest figures), 22% of Americans say that their bank savings will be a big contributor to their retirements.
Annuities/Insurance: Like an inheritance, not too many retirees figure that annuities or insurance will be a big factor for retirement income. Gallup says that only 9% answered that question in the affirmative.
Rent: With homeowners — and home investors — suffering severe hardships over the past few years, the number of retirees who say that rent will be a key factor in retirement is historically low — at 6%, Gallup says.