When it comes to retirement income, depending on the government is the worst way to go. Assuming it still exists by the time you retire, a Social Security check will hardly provide a decent standard of living.
And don’t count on pensions if you work for the government; these days, people who have worked for their state or local government for decades are reaching retirement age, only to be told that the pension they have paid into all those years has been depleted.
Luckily, there are many other ways to receive a comfortable income after you retire. Of course, nothing is guaranteed, but most of the ways listed below are tried-and-true, low-risk ways to live your retirement years with a solid financial foundation.
1. Market investments.
Stocks, bonds and mutual funds provide a nice retirement income for most who invest wisely into them.
2. Corporate pension.
Notice I said corporate, not government. A private corporation that is doing well financially, and that has promised a pension, will likely fulfill that promise when you retire from it.
Traditional savings accounts, as well as Certificates of Deposit accounts, are perhaps the safest way to develop a retirement income. Unfortunately, they are also the slowest to grow, and should only consist of a small part of your retirement plan.
4. Home equity.
If you own a home – especially if you have paid off the mortgage by the time you retire – borrowing some money against your home can provide a bit of financial cushion in a pinch. This is not advisable, however, since the last thing you want to do when you retire is to acquire debt.
It’s great if you get one – especially one that would easily take you through all your retirement years – but it should not be counted on unless you receive the inheritance well before retirement and are disciplined enough not to touch it until you need it.
Annuities guarantee a fixed payout. Although the return on your investment is small, they are a secure place for your money after you retire.
If you don’t mind the hassle factor, owning a rental property or two can add a nice supplemental income after you retire. Depending on your level of creativity, you may also be able to receive royalties from books or songs that you write.
8. Part-time work.
Many people, after retiring from a full-time career, take on part-time jobs that involve work they enjoy and that often provide flexible hours. Although this kind of retirement income is not passive, it provides a nice steady check and (hopefully) keeps you active and feeling fulfilled.
9. An MLM check.
Multi-level marketing is not for everyone, but many people can develop a regular monthly check of at least a few hundred dollars after working the business for anywhere between a few months and a couple of years. The beauty of MLMs, also known as network marketing, is that your paycheck can continue to grow, even after you have stopped working on it.
If you want to receive a healthy retirement income, take action today. Put at least a couple of the above choices in place, and keep your eye on the goal.