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.
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."