When you reach retirement, those steady paychecks from your employer will no longer arrive. You can access Social Security retirement benefits when you reach full retirement age. However, chances are those payments won’t be sufficient to meet your spending needs. So, it is important to ensure you have an income strategy designed to help you fund your desired lifestyle in your retirement years.

In addition to Social Security, there are several types of retirement income that could make up your overall plan. Those include employer-sponsored retirement plans like 401(k)s and 403(b)s, pension plans, IRAs, Annuities, Reverse Mortgages, “regular” investments like stocks, bonds, and mutual funds, savings accounts and CDs, and even income earned through part-time employment while retired.

Let’s take a closer look at a couple of those income streams:

Defined Contribution Plans

If you have a 401(k), 403(b), or 457 plan through your employer, they can be a great way to save for retirement now. Contributions and growth are tax-deferred, meaning you don’t pay taxes until you take distributions from your plan.

When you reach retirement, you will need to turn your savings into a retirement stream and your distributions will be treated as ordinary income. If your employer doesn’t offer the option to “annuitize” your defined contribution plan, you can roll over your balance to an IRA. Your tax advisor can help you evaluate the impact of various options.


Annuities are another common retirement income vehicle. There are actually several different types of products that fall under the broad “annuity” heading. With a deferred annuity, you can start with a lump sum or make monthly, quarterly, or annual contributions to your contract. Your money grows tax-deferred until you are ready to annuitize it in retirement. With an immediate annuity, you deposit a lump sum and then immediately begin receiving income from it.

If you choose a fixed annuity, which offers a guaranteed interest rate, or an equity-indexed annuity where your interest rate is still guaranteed but includes some additional growth potential, you can be confident knowing that you will receive regular income distributions from your annuity contract.

Could You Benefit From a Retirement Income Plan Review?

Do you have a tailored retirement income strategy in place? If not, or if you do but your plan could benefit from a check-up, contact Christopher Ferguson Insurance in Tyngsboro, MA today. We will help you evaluate your retirement income needs and goals, and look at how your current savings stack up. If there is a projected shortfall, we can help you identify retirement income vehicles and strategies designed to help you reach your goals. Call us at 617-386-6572 or use our easy online contact form.