Planning for your retirement is a must, and the earlier the better. The Social Security Administration defines full retirement age as 66 or 67, and you probably hope to live decades beyond your last day at work. Financial security during your retirement years can come from income and insurance.

Wealth is often a product of multiple income streams; this is true at any stage of life. However, having money coming in from several sources can be especially important during your retirement years. Here are three common sources of income and one type of insurance; together they can offer you financial stability and peace of mind.

Retirement Savings Accounts

You may have a pension or a 401(k) plan from your current or previous employer. Perhaps you started an individual retirement account on your own. In any case, those retirement accounts probably provide the largest part of your nest egg. A large lump sum can be extremely comforting as you near the end of your working life. Furthermore, the monthly distributions from your retirement accounts can provide a steady income.


You may wish to augment your primary retirement accounts with an annuity. There are two main types of annuities: fixed and variable. As the name suggests, variable annuities can vary in their payout depending on how you invest. This can make them hard to rely on as you design a budget.

Fixed deferred annuities are popular with many retirees. They provide a safety net in two ways. First, they earn a fixed amount, regardless of what the stock and bond markets do. Second,  they guarantee you will receive payments as long as you live.

Rental Property

Many retirees own their homes outright but want to downsize, so they sell the large house and purchase a condominium or townhome. However, in today’s rental market, you may be better off renting out your family home. You can then finance the smaller dwelling; low mortgage rates and a large down payment make monthly payments affordable. The rental payments on your larger house should cover the mortgage on your townhome and provide extra income. As an added bonus, you build equity on two properties, enhancing the estate you can leave to your children.

Long-term Care Insurance

Long-term care insurance is an often-overlooked aspect of your retirement portfolio, but it is crucial. You never know what health challenges you may face as you age, or what kind of medical care you may need. A long-term care policy can cover medical expenses without depleting your nest egg and putting your retirement distributions at risk. It protects you, your children, and your estate.