What are the 7 income streams that retirees can use to prepare for retirement?

Here are seven income streams retirees can use:

1. Social Security benefits, providing a guaranteed monthly baseline.
2. Pension income, if offered by a former employer.
3. Retirement accounts like 401(k)s and IRAs, withdrawn strategically.
4. Investment income from dividends, interest, and capital gains in taxable brokerage accounts.
5. Annuities, purchased to create predictable, guaranteed payments.
6. Rental income from real estate properties.
7. Part time work or consulting, which supplements savings and eases the transition into retirement.

Combining these sources helps diversify risk, since relying on just one, like Social Security, may not cover all expenses. A mix of guaranteed income (Social Security, pensions, annuities) and flexible income (investments, rentals, work) gives retirees more stability and control over their finances.