Three Legged Stool Retirement

The three legged stool is an old phrase that many financial planners once used to describe the three most common sources of retirement income.

Three legged stool retirement.

The image of retirement finance as a three legged stool goes back decades. The three legs represent an employer pension employee savings and social security you need each one to build a strong retirement foundation. 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.

Personal savings much like a stool each financial leg was meant to carry its weight to support people in retirement. The three legs are social security pensions. Social security employee pensions and. The image of retirement finance as a three legged stool goes back decades.

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. A three legged stool though is the preferred seat for retirement metaphors. Together the three legs held up your retirement just like a stool. The three legs represent the three basic elements said to be necessary to support a comfortable retirement.