Retirement Income: The "Three-Legged Stool"
Traditionally, retirement income has been described as a "three-legged stool" comprised of Social Security, traditional employer pension income, and individual savings and investments. With fewer and fewer individuals covered by traditional employer pensions, though, the analogy doesn't really hold up well today.
Social Security retirement income
Today, about 93% of U.S. workers are covered by Social Security.1 The amount of Social Security retirement benefit that you're entitled to is based on the number of years you've been working and the amount you've earned. Your benefit is calculated using a formula that takes into account your 35 highest earning years.