What Sources Of Income Do You Plan To Rely On During Retirement?

All respondents

All answers:

Letters A, B, C, D and E refer to the following answers in all of this page's graphs:

  • A) Part time work
  • B) Social Security
  • C) Pension
  • D) Rental income
  • E) Dividends/interest income
  • X is the number of 'N/A' or not applicable.

    Key Takeaways from Survey Results

    • Part time work is the least popular source of income during retirement, with only 14% of respondents planning to rely on it.
    • Social Security is the most common source of income, with 35% of respondents depending on it.
    • The percentage of respondents relying on pensions is the same as those planning for part time work, at 17%.
    • Only 5% of respondents plan to rely on rental income during retirement.
    • Dividends/interest income is a popular choice, with 29% of respondents planning to rely on it.

    Insights from this part of the survey

    Based on the survey results, it is evident that there is a significant reliance on Social Security as a source of income during retirement, with 35% of respondents choosing this option. This highlights the importance of Social Security benefits in supporting individuals after they stop working.

    Furthermore, the percentage of respondents planning for part time work and those relying on pensions are the same at 17%. This suggests that a considerable number of individuals anticipate supplementing their retirement income through some form of employment, whether it be part time work or pension benefits.

    Interestingly, rental income is the least preferred option, with only 5% of respondents planning to rely on it. This may indicate that a majority of individuals participating in the survey do not consider renting out properties as a viable source of income during retirement.

    On the flip side, dividends/interest income seems to be a popular choice among respondents, with 29% planning to rely on it. This could suggest that many individuals have investments that generate dividend or interest income, providing them with an additional financial cushion during retirement.

    Comparison: Part Time Work versus Pension

    Source of IncomePercentage
    Part time work14%
    Pension17%

    When comparing the percentage of respondents relying on part time work versus those relying on pensions, it is interesting to note that while part time work may seem less popular, there is only a 3% difference between the two.

    This indicates that a significant portion of individuals are considering part time work as a viable option for generating income during retirement, potentially due to the desire to stay active or the need for additional financial security.

    Age analysis

    Ages from 25 to 29:

    Key Takeaways from Survey Results

    • In the age group of 25 to 29, part-time work was the most common source of income during retirement, with 40% of respondents selecting it.
    • For respondents aged 29 to 33, social security was the primary income source during retirement, chosen by 42% of individuals.
    • In the 33 to 37 age range, social security remained the dominant source of income during retirement, selected by 42% of respondents.
    • Among those aged 37 to 41, social security continued to be the most relied upon income source during retirement, with 45% of participants choosing it.
    • For individuals aged 41 to 45, dividends/interest income became a significant source of income during retirement, chosen by 40% of respondents.

    Insights from this part of the survey

    Looking at the statistics, it is clear that the preferences for income sources during retirement shift as individuals age. In the younger age groups, such as 25 to 29 and 29 to 33, part-time work and social security are the top choices, respectively.

    This suggests that individuals in their mid-twenties are more likely to rely on active work, while those in their late twenties to early thirties see social security as a viable option.

    As individuals enter their thirties, social security remains a popular choice, indicating a continuing reliance on government assistance. However, the presence of pensions and dividends/interest income also becomes more prominent, indicating a diversification of income sources.

    By the age group of 41 to 45, dividends/interest income becomes a significant factor, likely due to an increase in investments or savings. Moreover, the percentage of respondents relying on social security decreases, suggesting a decreased dependence on government support as individuals accumulate other sources of income.

    Explanation and Suggestions

    The results of this survey highlight the changing trends in income sources during retirement as individuals progress through different age groups. Please note that relying solely on one source of income may not be sufficient to provide financial security during retirement.

    For younger individuals in their twenties, part-time work is chosen as a primary income source. This may be due to the fact that they are still in the early stages of their careers and may not have accumulated significant savings or investments.

    However, it is crucial for them to start planning for retirement and explore additional avenues for generating income, such as investing in long-term savings plans or considering side gigs to supplement their earnings.

    As individuals enter their thirties and beyond, diversifying income sources becomes more important. While social security remains an essential component, exploring options like pensions, rental income, and dividends/interest income can provide additional stability.

    Building a portfolio of investments, saving for retirement through employer-sponsored retirement plans, and considering real estate investments could be viable strategies for securing financial stability in retirement.

    Male versus female

    Male respondents:

    Key Takeaways from Survey Results

    • For male respondents, the top sources of income planned for retirement are Social Security (33%) and Dividends/interest income (30%).
    • Female respondents also prioritize Social Security (37%) and Dividends/interest income (28%) as the main sources of income during retirement.
    • A significant portion of male respondents (19%) rely on a pension for retirement income.
    • Part-time work is a consideration for both genders, with 16% of males and 12% of females planning to rely on it.
    • Rental income is less popular, with only 2% of male and 9% of female respondents considering it as a source for retirement.

    Insights from this part of the survey

    These survey results highlight some interesting trends in the planned sources of income for retirement.

    Both male and female respondents prioritize Social Security as a key source of income, with a slightly higher percentage among females (37% compared to 33%). This suggests that individuals from this demographic view Social Security as a reliable and stable form of income during retirement.

    Dividends/interest income is also a popular choice among respondents of both genders, with 30% of males and 28% of females planning to rely on it. This may indicate that these individuals have investment portfolios or savings that can generate passive income.

    Interestingly, a higher percentage of males (19%) rely on a pension for retirement income compared to females (14%). This could suggest that certain industries or companies where males are more prevalent offer pension plans to their employees.

    Part-time work is considered as a source of income for retirement by both males (16%) and females (12%). This indicates that some individuals in this demographic plan to continue working in a reduced capacity during their retirement years.

    On the other hand, rental income is less popular among both genders. Only 2% of males and 9% of females plan to rely on rental income for their retirement needs. This may be due to the associated responsibilities and potential risks involved in managing rental properties.

    Explanation and suggestions

    These survey results reveal that individuals in this demographic have diverse plans for funding their retirement years. The reliance on Social Security and dividends/interest income suggests a level of financial foresight and management.

    Considering the prominence of Social Security as a planned retirement income source, it is crucial for individuals to stay informed about government policies and potential changes that can affect Social Security benefits.

    Additionally, exploring investment opportunities for generating dividends/interest income can be beneficial.

    While pensions are more common among male respondents, both genders should take advantage of any pension options available to them, especially if they work in industries that provide such benefits. It is essential to review and understand the pension plan's provisions to make informed decisions.

    In terms of part-time work, individuals planning to rely on it should consider exploring flexible job options and building a strong professional network for post-retirement employment opportunities.

    Engaging in activities that generate both income and personal fulfillment can greatly enhance the retirement experience.

    Although rental income is not very popular among this demographic, it can still be a viable option for those interested in real estate investment. However, thorough research and careful property management are necessary to maximize returns and minimize risks.

    Ultimately, it is crucial for individuals to consider a diverse range of income sources, combining them strategically to create a resilient retirement plan. This survey provides valuable insights into the preferences and priorities of this demographic, enabling better decision-making for a financially secure future.

    Female respondents:

    Good financial education' versus 'poor financial education'

    Good financial education:

    Key Takeaways from Survey Results:

    1. Good financial education: 41% of respondents who claim to have good financial education plan to rely on dividends/interest income, making it the most popular source of income.
    2. Poor financial education: 49% of respondents with poor financial education plan to rely on Social Security for income during retirement, indicating a lack of knowledge about other income sources.
    3. Part time work: Both groups, regardless of financial education, consider part time work as a source of income during retirement, with 16% of respondents with good financial education and 12% with poor financial education choosing this option.
    4. Social Security: 22% of respondents with good financial education and a higher percentage of 49% of respondents with poor financial education plan to rely on Social Security, implying the perceived importance of this income source.
    5. Pension: 18% of respondents with good financial education and 16% of respondents with poor financial education will be relying on pension in their retirement, showcasing the continued relevance of pension plans.

    Insights from this part of the survey:

    From the survey results, it is evident that having good financial education plays a significant role in shaping retirement income plans. Those with good financial education prioritize dividends/interest income, while those with poor financial education heavily rely on Social Security.

    This suggests that individuals with poor financial education may not be aware of other potential income sources.

    The reliance on part time work is consistent across both groups and showcases the importance of earning additional income during retirement. However, please note that part time work alone may not provide sufficient income to meet all retirement needs.

    While Social Security remains a popular choice among respondents, it is interesting to see that those with good financial education are less reliant on it than those with poor financial education. This demonstrates that those who are knowledgeable about financial matters are exploring alternative income sources.

    The presence of pension as a source of income for both groups shows its continued importance in retirement planning. Despite the decline in availability of pension plans, a significant portion of respondents still see it as a viable income source.

    Explanation and suggestions:

    The survey results clearly indicate the impact of financial education on retirement income planning. It is crucial for individuals to equip themselves with the knowledge and skills necessary to make informed financial decisions for their retirement.

    For those with good financial education, prioritizing dividends/interest income may be a wise choice. Please continue investing and diversifying assets to generate a steady stream of income in retirement.

    Exploring different investment options, such as stocks, bonds, and real estate, can also help in maximizing dividends/interest income.

    On the other hand, individuals with poor financial education should make efforts to improve their financial literacy. Understanding the various income sources available, apart from Social Security, can provide more security and flexibility in retirement.

    Seeking professional financial advice, attending financial literacy workshops, and utilizing online resources can greatly enhance their financial knowledge.

    Furthermore, it is important for both groups to consider a well-rounded approach to retirement income planning. While part time work can supplement retirement income, it may not be sufficient to meet all financial needs.

    Exploring other income sources, such as rental income or starting a small business, can provide additional stability and a diversified income portfolio.

    Poor financial education:

    Prefers a minimalist lifestyle' versus 'prefers a consumist lifestyle'

    Prefers a minimalist lifestyle:

    Key Takeaways from Survey Results

    • For those who prefer a minimalist lifestyle, the majority rely on dividends/interest income as their source of income during retirement (40%).
    • Part time work is the least popular choice among respondents with a minimalist lifestyle, accounting for only 6%.
    • Social Security is a significant source of income for both lifestyle preferences, with 32% of respondents who prefer a minimalist lifestyle relying on it and 38% of those who prefer a consumerist lifestyle.
    • Pensions are also substantial sources of income for both lifestyle preferences, accounting for 17% of respondents in each group.
    • Rental income is not a significant source of income for either lifestyle preference, with only 6% of those who prefer a minimalist lifestyle and 4% of those who prefer a consumerist lifestyle relying on it.

    Insights from this part of the survey

    These survey results reveal interesting patterns in the income sources that individuals plan to rely on during retirement based on their preferred lifestyle.

    It is clear that dividends/interest income play a crucial role in supporting a minimalist lifestyle during retirement, with 40% of respondents in this category relying on this source. This suggests that individuals who prefer a minimalist lifestyle tend to invest in income-generating assets or securities, which can provide them with a steady stream of passive income.

    On the other hand, part-time work seems to be a less favored choice among respondents with a minimalist lifestyle, with only 6% relying on it. This may indicate that individuals who choose this lifestyle value financial independence and prefer not to depend on active work during retirement.

    It is noteworthy that Social Security is a significant source of income for both lifestyle preferences, with 32% of respondents who prefer a minimalist lifestyle and 38% of those who prefer a consumerist lifestyle relying on it.

    This suggests that Social Security benefits are considered essential regardless of the chosen lifestyle, providing a foundation for retirement income.

    Pensions also play a notable role for both lifestyle preferences, accounting for 17% of respondents in each group. This emphasizes the importance of having a pension plan in place to ensure a stable income stream during retirement, regardless of the desired level of consumption.

    Interestingly, rental income does not significantly contribute to retirement income for either lifestyle preference, with only single-digit percentages relying on it. This indicates that real estate investments may not be as popular or accessible among the surveyed individuals, or they may have opted for other sources of investment income.

    Explanation and suggestions

    These survey results highlight the complex dynamics between lifestyle preferences and preferred sources of income during retirement. The choice between a minimalist or consumerist lifestyle significantly influences the income strategies individuals plan to adopt.

    For those aspiring to a minimalist lifestyle, the focus on dividends/interest income suggests that investments in stocks, bonds, or other income-generating assets should be considered. Building a well-diversified investment portfolio that prioritizes generating passive income could be a prudent approach.

    However, individuals should also be cautious and seek professional advice to ensure they have adequate risk management strategies in place.

    Although part-time work is less popular among those who prefer a minimalist lifestyle, it can still provide a supplementary income source while maintaining flexibility. Exploring freelance opportunities, consulting, or starting a small business aligned with personal interests could be viable options to consider.

    Regardless of the chosen lifestyle, understanding the benefits and implications of Social Security is crucial. Individuals should educate themselves on eligibility requirements, projected benefits, and potential strategies to maximize their Social Security income.

    This includes considering factors like claiming age, spousal benefits, and potential impacts on other retirement income sources.

    Pensions remain significant income sources for both lifestyle preferences, indicating the importance of securing a pension plan before retirement. Employees should consider exploring pension options offered by their employers or exploring self-funded pension plans to establish a reliable income stream during retirement.

    While rental income may not be a prevalent source of income based on this survey, it should not be entirely discounted. Those with an inclination towards real estate investments can explore opportunities in rental properties or other real estate ventures.

    However, alongside potential benefits, individuals should also consider the responsibilities and risks associated with property management.

    Prefers a consumist lifestyle:

    The complete survey and the other results

    You can find the complete survey results, methodology and limitations here:

    Early retirement survey

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