Sources of Retirement Income

It has been said about the three sources of retirement income that, like a three-legged milking stool, support is needed from every one: Social Security, company or individual retirement plans (including Keogh and IRA), and personal savings.

Social Security

On retirement at age 65, you are entitled to Social Security benefits but must apply for them. Visit your local Social Security office with your Social Security card in hand at least four months before reaching 65 to get the wheels turning. Your first Social Security check will arrive within the first ten days of the second month after you retire. The amount will be automatically indexed to inflation. Assuming inflation continues, and depending on its severity, you can expect annual increases, probably in July. Also, after your first year of drawing Social Security benefits, you may receive a further increase due to recalculation of your benefits, taking your last calendar year's earnings into account. Your Social Security payment can be automatically deposited in your checking account at your request, for convenience and safety.

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