Estimated Total Retirement Costs:
Year 1: 24,974 * 12 = $299,688
Year 5: 24,974 * 12 * 5 = $1,498,440
Year 10: 24,974 * 12 * 10 = $2,996,880
Year 15: 24,974 * 12 * 15 = $4,495,320
Year 20: 24,974 * 12 * 20 = $5,993,760
Sources of Income during Retirement:
Pension: A pension is a regular payment received by retirees, typically provided by employers based on an employee's years of service and salary history.
Social Security: Social Security is a government-administered program that provides retirement benefits based on an individual's contributions during their working years.
Retirement Savings/Investments: Personal savings, investments, and retirement accounts, such as 401(k)s or IRAs, can serve as additional sources of income during retirement.
Annuities: Annuities are financial products purchased from insurance companies that provide a stream of income in exchange for a lump sum or periodic premium payments.
Rental Income: Retirees who own rental properties can receive rental income as an ongoing source of funds.
Part-Time Work: Some retirees choose to work part-time or take on consulting gigs to supplement their retirement income.
Dividends and Interest: Income from dividends and interest generated by investments, such as stocks and bonds, can contribute to retirement funds.
Reverse Mortgage: For homeowners, a reverse mortgage allows them to access home equity as a source of income during retirement.
Inheritance: Some retirees may receive inheritances, which can add to their overall retirement funds.
Freelance or Side Business: Retirees with skills or hobbies may opt to freelance or run a small business to generate additional income.