The “Three-Legged Stool” of Retirement Planning

Based in North Andover, MA, New England Investment and Retirement Group, Inc., was founded by Nicholas Giacoumakis, who serves as its president. Veteran financial adviser Nicholas Giacoumakis is dedicated to ensuring that the group’s clients receive first-rate retirement planning assistance.

In the past, retirement planners used the term “three-legged stool” to refer to the three common sources of retirement income: social security, pensions, and personal savings. Now, however, economic changes have altered the formula, and people planning for retirement often need assistance understanding what the new “legs” are and how they can best prepare themselves. Pensions, for instance, are much less common today, having been all but replaced by 401(k) plans, in which employee contributions may or may not be matched by employers. Social security’s future is less certain than it once was, making personal savings increasingly important. However, savings rates in the U.S. have been low over the past decade. Financial advisers can provide help understanding IRAs and other retirement-based savings tools.