Top 3 Sources of Retirement Income — Which One Are You Using?

A apical precedence for galore Americans is redeeming for retirement. According to Bank of America’s 2025 Workplace Benefits Report, workers are focused connected much than gathering basal fiscal needs. They privation to thrive successful status and program to trust connected respective sources of income to bash so.

But with truthful galore options, including Social Security, employer-sponsored status plans, idiosyncratic investments and more, it’s not ever wide which ones radical thin connected the astir arsenic they hole for beingness aft work.

According to BOA, these are the astir communal status income streams and what fiscal experts accidental astir each one.

The BOA study recovered that 85% of respondents accidental their apical expected root of status income volition travel from a 401(k) oregon 403(b) status plan.

Doug Carey, chartered fiscal expert (CFA) and laminitis of WealthTrace, a status and fiscal readying bundle for consumers, said he’s not amazed by the apical root of income. According to Carey, Tax-deferred status plans are the azygous biggest root of wealthiness for galore retirees.

“Over the past 40 years, galore tax-deferred status plans person skyrocketed owed to the beardown show of the U.S. banal market,” Carey said. “Using the returns of the S&P 500, if a idiosyncratic contributed $10,000 a twelvemonth to a 401(k) program implicit 40 years and was invested 80% successful stocks, she would person astir $3.5 million.”

However, Linda Jensen, wealthiness absorption for individuals and main proprietor astatine Heart Financial Group, pointed retired that this reliance besides signals a important taxation load successful retirement.

“When the bulk of a retiree’s income is coming from tax-deferred accounts, taxes go 1 of their largest and astir unpredictable status expenses,” Jensen said. “It besides means galore retirees are entering status with constricted taxation flexibility and dense vulnerability to aboriginal required minimum distributions.”

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Social Security came successful second, with 75% of respondents expecting it to beryllium a apical root of income successful retirement.

And employees who mean to cod Social Security accidental they’ll bash truthful astatine the mean property of 66, though lone one-third accidental they recognize what those benefits would be.

And arsenic of May 2025, lone 45% of employees accidental they inactive program to trust connected Social Security successful retirement. BOA besides recovered that 2 successful 3 are acrophobic that benefits won’t beryllium determination for them by retirement, and 40% accidental they’re nary longer assured successful Social Security arsenic a root of aboriginal income.