The three layers of retirement income
Most American retirees live on some mix of three things: Social Security, a pension if they have one, and their own savings. Social Security and pensions pay a steady check. Savings in a 401(k), 403(b), 457(b) or IRA fill the gap between those checks and what you actually spend.
While you work, the main questions are how much to save and whether to use pre-tax or Roth accounts. Once you retire, the questions flip: how much you can safely take out each year, which account to draw from first, and how to keep taxes and required minimum distributions under control.
