Alex is interested in saving for retirement and lands a job that offers to contribute one-third of what he contributes to a 401k account. Alex is nervous about losing money so he opts for a low-risk investment that has an APR of 3.1%. If Alex is 33 years away from retiring, and contributes $150 each month, Excel reports that there will be $135,032.93 in the account when he retires

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.