My Sources of Retirement Income

Here are my approximate percentages of income sources for 2024.

53% Interest and Dividends

27% Social Security

20% Rental Income

0%  IRA/401K withdrawals

We have no pension.  

Having interest rates in the 4-5% range has been a great benefit.  My plan is for interest rates to continue in the 4-5% range until 2030.  If interest rates drop, we may need to make some IRA withdrawals or sell some stocks for a Long Term capital gains.

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This is not financial advice. Please consult a professional advisor.

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How Much Did I Need to Retire?

More than I thought.

I estimated that I would need to 20 times my final base salary to comfortably retire since neither of us had a pension. 

It did work, but it was really tight.  

What happened:

• The Great Recession of 08/09 happened right after I retired.   Reduced our retirement accounts by nearly 50% and it took several years to recover.
  
  
• Interest rates dropped to nearly 0%.   I was counting interest rates being around 5% for most of my retirement.
  
  
• While my spouse and received retiree health insurance at reduced premiums, our two minor children had to pay full premiums for health coverage.
  
  
• I retired at 49, which meant I wasn't eligible for Social Security.

What helped:

• The market recovered and my retirement accounts recovered.
  
  
• Early on, we paid off our mortgage which significantly reduced our monthly expenses.   We had already paid off our cars and didn't have any credit card or student loan debt.
  
  
• I had deferred compensation payments for 7 years during my fifties.
  
  
• We were able to avoid using any funds from our tax advantaged retirement accounts.
  

What made a difference:

• Interest rates are now at 4-5% making CDs and Bonds good income generating investments.
  
  
• The stock market recovered and is much higher than when I retired.   
  
  
• We were lucky and our parents left an inheritance equal to about 50% of our own savings.   We haven't spent any of the inheritance principal, only the earnings, and the principal has increased with the growth in the economy.
  
  
• I started taking Social Security benefits before full retirement age.
  
  

Bottom line:  I believe a significantly higher retirement savings amount is needed than when I retired.  If retiring early (e.g. in the fifties), I'm guessing 30-40 times final salary in savings.  If already receiving Social Security payments or a pension, perhaps towards the lower side.

For more on  New Beginnings, check back every Sunday for a new segment.

This is not financial nor retirement advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC