This is due, in part, to having their main sources of income change from fully taxable earned income to tax advantaged income sources. Once you have estimated your target retirement income, you are ready to begin to evaluate what sources of income will be available to you to meet your monthly needs. Generally speaking, your sources of retirement income fall into three categories, which we will discuss below. Social Security is available to everyone, but the amount you receive will be based on how much you earned during your working years. Company Sponsored Plans.
Many employers offer company sponsored retirement plans.
These plans come in many forms but generally can be broken into two categories. Defined Benefit Plans are normally funded entirely by the employer and guarantee a retirement benefit based on a combination of years of employment and employment earnings. A Defined Contribution Plan may be funded by the employer, employee or a combination of the two. At retirement, the employee decides how they will withdraw the balance they have accumulated. Personal Savings .