4 Income Sources For A Secure Retirement

Income Sources For A Secure Retirement

Outliving your retirement savings means running out of the money you’ve set aside to fund retirement, a time when a regular paycheck isn’t rolling in. If a retiree doesn’t have other means of retirement income, they may have only limited monthly funding through Social Security to keep them afloat. That’s why it’s so important to set up the right revenue streams to ensure that you continue to earn money after you leave the workforce. Let’s look at four relatively low-risk income sources you can obtain to help ensure a secure retirement.

Why Retirement Plan Is A Necessity?

Everyone must have constructive planning for retirement. A retirement plan gives a much bigger security when you are inactive enough for work. Below, we stress some points that provide you with an idea of why you must have your own retirement planning.

Increasing the Average life expectancy

It’s not a secret that financial stress affects your financial expectancy. When you do not have to keep worried about your financial expectancy, you will automatically keep sound health and well-being. 

Increased Medical Expenses In The Old Age

As you grow old, your body will not be able to work the way you expect. As a result, your expenditures will increase for sure. That time, the money you saved for old age will help you mitigate your physical exigency. Therefore, you must show your alacrity and save your earnings to meet your physical expenditure. So let us try to understand it here to safeguard your tomorrow.

You Must Not Want To Burden Your Dependants 

If you have children, then in that case you wouldn’t mind spending much time. This is the time in your life when you would be playing and running with your grandchildren. Economic security helps safeguard your dignity and, at the same time, helps you live independently. Any dependency on the posterior generation, atleast in terms of money, is not good.

The Sources of Income For A Successful Retirement

In this article, we discuss some of the retirement sources you must look for while saving for your retirement. 

Dividend Stocks

Dividend Stocks

Dividend stocks provide shareholders with portions of a company’s earnings. Like all stocks, they present the potential for capital appreciation, in which the value of the stock may increase over time. By selling the stock at a point when its value is above the purchase price, an investor earns capital gains. In addition to capital appreciation, though, dividend stocks also function as an income stream, with the amount of income increasing with every share that one owns. Companies ordinarily pay out dividends on a quarterly basis, so investors can expect injections of cash four times a year.

Market volatility can limit a stock’s capital appreciation, but dividends offer some protection against that risk, as shareholder payouts may persist even in the face of value fluctuations. With that being said, dividends aren’t always guaranteed, so it’s important to buy dividend stocks that have a history of both consistent and growing payouts.

Fixed Annuity

An annuity is a contract you enter into with an insurance provider. The idea is that you fund an account, the provider invests the funds, and the account grows tax-deferred. When your contract ends, you have the option to begin receiving the grown funds in a series of regular payments. With a fixed annuity, the insurance provider offers you a fixed rate of growth. For every year of the contract, the account will grow cumulatively at the interest rate determined by the insurer when you purchased the annuity.

A fixed annuity can be a great retirement investment partly because you can more easily calculate how much your account will grow by the end of the contract term. Say that you’re a 57-year-old who contributes $200,000 to a 10-year fixed annuity, on which the insurance provider offers you a fixed interest rate of 5%. By the end of the contract term, when you reach full retirement age, the annuity account will have grown to over $325,000. If you estimate that you’ll have a 20-year retirement, that would amount to around an extra $1,350 per month in guaranteed income.

Reverse Mortgage

Reverse Mortgage

A reverse mortgage allows homeowners to leverage their home equity to help fund their retirement. Reverse mortgages are similar to traditional mortgages in that they allow you to borrow money using your home as collateral, with the title to the home remaining in your name. However, they differ from traditional mortgages in that you don’t owe monthly payments to a lender; rather, the lender provides you with a lump-sum payment or monthly payments.

The idea is that the homeowner or their heirs will repay the loan when the homeowner no longer lives there. Often, this is done by using the proceeds from selling the home. Given that, reverse mortgages are probably best suited to retirees who don’t plan to bequeath their home to their family. Bear in mind that there are several fees associated with reverse mortgages, which get added to the loan and accumulate interest.


Semi-retirement is a practice by which someone works to some degree during their retirement years. That might mean working in a reduced capacity at their current job, taking on a lower-stress part-time job, embarking on an entirely new career, or monetizing their hobbies. Semi-retirement has grown in popularity because it allows people to earn income while staying active during their golden years.


Semi-retirement can be especially attractive, even enjoyable, if you monetize your hobbies, as you’re essentially getting paid to do something you’d probably be doing anyway. If you’re into gardening, for example, you could haul your yield to the farmer’s market every week to pad your bank account. Other commonly monetizable hobbies include photography, painting, woodworking, and writing.

One of the best ways to protect yourself against the risk of outliving your retirement savings is to plan wisely. In advance of retirement, take inventory of your savings, income sources, and desires to determine both a budget and expectations for expenses. By having a clearer sense of how much money you’ll need to fund your retirement, you can more accurately envision and prepare for your future.

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