9 Ways to Pay for Retirement

Setting up several sources of income can protect your retirement security.

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Savings accounts and CDs. Some current workers (37 percent) say interest rates will have a major impact on when they will be able to retire. A quarter of retirees get the majority of their spending money from savings accounts and CDs, and 50 percent say this is a minor source of retirement income, Gallup found. Some current workers (30 percent) are hoping these FDIC-insured accounts will provide enough of a return to be a major source of retirement income. Tillotson recommends that retirees keep at least one or two years' worth of living expenses in cash in these conservative accounts.

[See How to Motivate Yourself to Save for Retirement.]

Annuities or insurance plans. Annuities and insurance plans typically make up a minor source of retirement income. Just 19 percent of retirees say a significant amount of their retirement money comes from these financial products, and 17 percent of employees expect to utilize them.

An inheritance. A few fortunate retirees (6 percent) say an inheritance is significantly funding their retirement. About the same proportion of workers (7 percent) are expecting a large inheritance, and 39 percent are hoping for at least a little inherited money. However, your elderly relatives could end up needing that money if they live longer than expected. "Your parents may be very well heeled, but one long-term medical problem can take the assets that you were anticipating inheriting," says Tillotson. "If you get it, it's gravy."

Twitter: @aiming2retire