From which sources might a retired person typically receive income?

A retired person typically receives income from sources that provide a stable and consistent cash flow to support their living expenses during retirement. Personal savings and investments, such as savings accounts, CDs, and diversified investment portfolios, are crucial because they can provide a reliable stream of income through interest or dividends. Social Security, being a government-provided income program, offers retirees monthly benefits based on their earnings record, which is a fundamental component of retirement income for many. Additionally, employer-sponsored retirement plans, such as 401(k) or pension plans, are designed specifically to provide income in retirement, as they accumulate contributions made during the individual's working years.

The other options, while they may include some sources of income that a retiree might consider, do not represent the most common or reliable income streams. Borrowing against home equity and personal loans can create financial obligations, making them less desirable. Part-time work may be an option for some retirees, but it is not a guaranteed source of income like the primary options listed. Rental income and investments in stocks could be occasional sources but are not as predictable as pension and Social Security payments. Finally, employment income typically ceases upon retirement unless the individual chooses to work part-time, and insurance payouts vary significantly and are generally not consistent