Achieve Financial Freedom: The Best Way to Get Income in Retirement

Planning for your golden years can be both thrilling and a bit nerve-wracking, especially when you want to discover the best way to get income in retirement. You might be looking forward to extra travel or supporting loved ones, but you also want to keep your finances on track for decades to come. Luckily, today’s retirees have many income sources to mix and match, from Social Security to part-time gigs.

Here are five frequently asked questions around the best way to get income in retirement: how do I find my pension, how do I plan for taxes in retirement, how much does retirement cost, how can I build sustainable income, and how do I manage retirement withdrawal strategies?

Below is a quick snapshot of several popular retirement income sources:

1. Delay Your Social Security

If you can cover expenses without Social Security for a few extra years, delaying benefits could give you a bigger monthly check. In fact, every full year you wait beyond your standard retirement age (usually 66 or 67) can net you up to an 8 percent increase in your benefit, all the way until age 70 (Western & Southern Financial Group). Waiting a little longer might feel tough now, but it can pay off when you’re in your 80s or 90s.

2. Diversify Your Retirement Plans

Many people build wealth through IRAs or 401(k) plans, but remember to keep your investments balanced. Consider combining a traditional IRA with a Roth IRA, if you meet eligibility requirements, so you’ll have both taxable and tax-free withdrawal options in retirement (IRS). If you want a handy tool to estimate expenses, check out the best retirement budget spreadsheet. And if you’re just starting to figure out timelines, see how much does retirement cost for extra insight.

3. Add Annuities For Stability

Annuities can deliver guaranteed payouts, helping you worry less about outliving your nest egg. You invest a lump sum (or spread out contributions), and in return, receive a steady stream of income that might last for life (U.S. Bank). This reliable income can supplement Social Security and smooth out market fluctuations. On the flip side, annuities often come with fees or penalties if you withdraw early, so weigh the pros and cons or talk to a retirement plan advisor first.

4. Invest In Growth Assets

Retirement can easily span 20 or 30 years, so staying invested in growth-oriented assets, like certain stocks or stock funds, may help your money keep pace with inflation. Fidelity’s research suggests retirees who avoid stocks entirely could risk outliving their funds (Fidelity). A balanced mix of stocks and bonds lets you tap into long-term growth while managing the bumps of market downturns. For more pointers on shaping a withdrawal strategy, you can look into retirement withdrawal strategies.

5. Try Part-Time Work

Need extra cash, but not quite ready to hang up your working hat? A part-time or consulting role can amplify both your income and your sense of purpose. Some people turn a favorite hobby—like woodworking or writing—into a small business to keep life interesting after leaving full-time work (Western & Southern Financial Group). If you need more inspiration, see how to make money in retirement for practical ideas.

Wrap-Up

Securing strong retirement income is all about choosing a blend of methods that serve your goals, timeline, and risk tolerance. Some folks rely primarily on Social Security and annuities, while others balance stocks, real estate, or a fun side hustle. If you’re curious whether you’ll owe taxes on these different income sources, take a peek at do i have to pay taxes on retirement income. You can also explore retirement income planning for more in-depth guidance.

Above all, make choices that fit your unique lifestyle so you can enjoy your future, worry-free. After all, you’ve earned it!