Income Sources
Where retirement money comes from5 sections
A paycheck stops at retirement and expenses do not, so retirement income is usually assembled from several sources at once. Each carries different tax treatment, timing and certainty.
The income bar below the chart shows how much of the target each source covers:
- Portfolio
- Withdrawals from savings and investments.
- Employer match
- Accumulated matching contributions.
- Social Security
- A government benefit derived from your earnings history.
- Pension
- A defined benefit from an employer.
- Gap
- Target income the other sources do not reach.
The sources behave differently under stress. Social Security and a pension continue regardless of markets, while portfolio withdrawals depend on balances that move. That difference is why a plan's composition affects its Monte Carlo result and not only its total.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.