We are all very acquainted with the term 'Employment Income' but what is 'Retirement Income'?
Allow me to refresh your memory by defining the word Employment Income first.
As simple as it could mean , the term is expressed as any sort of income a person derived whether monetary or non-monetary, in exchange of some consideration of work or chores being rendered out while the person is in the age of economically active. If you are not retired from employment, you are said to be economically active, by virtue of good health. However, once your body is physically unhealthy to execute jobs, you are said to be economically inactive or commonly known as retired person.
How does a retired person gets his income during his retirement period? No employer would want to employ an economically inactive person if that same employment can be accomplished by more stronger and capable young person. If retired person has no employment, they have no income and if they have no income how are they supposed to continue lead their life?
Most majority of retirees have their social security money to assist them to lead the kind of life they once envisaged during their economically active life period. The return that this social security fund generated is an income to the retirees. The retirees chart the course of their golden life based on this returns that the social security provide. This return is called Retirement Income!
Some other forms of retirement incomes are legacy money, private investment returns from shares, stocks and properties, and saving deposits.
Now that you know the difference, go and start building your retirement income while you are still economically active!
