Three Legged Stool Retirement

The three legged stool of retirement is a term the fin ancial industry once used to describe the three common sources of income that when combined would provide people a secure retirement.

Three legged stool retirement.

The 3 legged retirement stool is a metaphor for the three traditional post world war ii ways to fund retirement social security employer pensions and personal savings. The three legged stool is a metaphor for how the post world war ii generation looked at planning for retirement. The image of retirement finance as a three legged stool goes back decades. The three legs represent the three basic elements said to be necessary to support a comfortable retirement.

Social security employer pensions and personal savings. The three legged stool is an old phrase that many financial planners once used to describe the three most common sources of retirement income. Social security employee pensions and. A three legged stool though is the preferred seat for retirement metaphors.

The three legs represent an employer pension employee savings and social security you need each one to build a strong retirement foundation. The concept is valid you should have a variety of ways to support your retirement. Together the three legs held up your retirement just like a stool. Personal savings much like a stool each financial leg was meant to carry its weight to support people in retirement.