Are You Looking For Retirement Income Security?
By: Rudy Silva | Posted: 02nd June 2010
Are you ready to retire and have a lot of money saved up? Did you forget to save for retirement? One day you will be retired. So what can you do now, if you did not save retirement money? If you are not ready to retire, then you will need to keep working part or full time. To find out key ideas about retirement income security, read this article.
Retirement income security can come from many different sources. For you to fully enjoy your retirement, you simply need to understand where your income security comes from during retirement.
Having a real stable retirement savings plan may help, but you still need to see where you can get your income security when you retire. Some of the sources of income for current retirees are as follows: Pension, Social Security, Personal Savings, investments and part time or full time work.
Whichever source it comes from, should not be a big deal. What is important is for you to have retirement money. It is always best to start your retirement savings plan early in your career. Take advantage of any IRA and put in any amount just to get started.
However you want to spend it, retirement is supposed to be the best years of your life. Thus, you should prepare for it. Having a retirement income security is one way to ensure financial stability during retirement.
Most of us when we first start working have retirement as the last thought in our mind. You have other needs for your income. But, just as you stand there doing your job, one day you will be standing some where as a retiree.
Here are some sources for your retirement income security and its specifications so you may fully understand each of them:
Government Benefits - The amount of retirement benefits or pension that you will get from the government depends on which country you reside in. In the US if you retire before your retirement age, you can earn wages but they will be deducted from your Social Security. But, if you retire at full retirement age, you can earn any amount and you will still get full benefits.
Pension Plans - A pension benefit will depend on whether you are part of a defined benefit pension plan or a defined contribution pension plan. The best pensions are usually defined benefit plans that replace a maximum of 70% of your pre-retirement income. But, this type of plan is usually with a government agency or as an executive in a large company. There are many companies now that do not give pension plans other than contribution plans such as IRA's or 401K's.
Registered Retirement Savings Plans (RRSPs) - This will or has become one of the biggest sources of retirement income, since most employers don't offer company pension plans. Social Security Systems may fall in this class. This is tremendously flexible plan, since you can take from this account subject to government regulated minimum amounts.
Non-RRSP Investments - Non-RRSP investments include stocks, bonds, GICs, mutual funds, and investment real-estate, which provide the most flexibility. What is crucial about this retirement income plan is the after-tax implications.
Income from work - Working in retirement is now one of the fastest growing trends in retirement planning. In fact, more and more retirees are now working in their retirement. Retirees have different reasons to work. Some maybe working for money, while others just want to keep themselves busy in order to maintain social relationships.
Regardless of your reasons for working, the fact remains that retirees working in retirement ought to do it. Working gives you extra cash and keeps your mind active and young. If you don't use your brain as you age, you stand a good chance of become senile and dependent on others.
Once you become a dependent retiree, your retirement income security becomes controlled by your assigned administrator. Have you saved enough to become dependent on others?
If you want expert help in creating your retirement income security, go to http://www.alphainvestmentadvisory.com/ . We are Florida registered investment advisors. We help you with your wealth building. Do you need help to create your retirement savings plan? Let us get you started right, for your retirement money at Income retirement security.
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Tags: job, part time, investments, wages, social security, retirement age, retirement benefits, full time work, personal savings, government benefits, ira, financial stability