Retirement income is the money you use to support yourself after you stop working. It can come from a mix of personal savings, government benefits, employer pensions, and investment accounts.
Sources of Retirement Income
- Government programs: In Canada, these include CPP (Canada Pension Plan) and OAS (Old Age Security).
- Employer pensions: Defined benefit or defined contribution plans offered by employers.
- Personal savings: Registered accounts like RRSPs, RRIFs, TFSAs, and non-registered investments.
- Other sources: Part-time work, rental income, or annuities.
Why It Matters
Retirement income planning ensures you have enough money to cover living expenses for the rest of your life. A balanced strategy protects against outliving savings while allowing you to enjoy your retirement years.
Final Thoughts
The best retirement income strategy combines multiple sources and considers taxes, inflation, and longevity. Planning ahead ensures financial stability in retirement.