You Rely On a Single Source of Income
Roughly 3 out of 4 workers cite Social Security as the primary source of income in retirement, according to Transamerica. At the same time nearly half of American workers fear Social Security will be reduced or cease to exist by the time they retire. (It won’t.)
However, Social Security alone probably won’t be enough to see you comfortably through retirement. Having multiple income streams is the smartest play for retirees. Lean on a mix of a pension, if you’re among the fortunate few to have one; a 401(k) from your job; your own IRAs, either Roth or traditional; and the aforementioned annuities that can provide either lump sums of cash or steady payouts, depending on the type of annuity you choose.