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Retirement is a significant phase of life, especially for baby boomers. As they near retirement age, they need to start preparing adequately to ensure they have enough income to sustain themselves for the rest of their lives. Baby boomers need to know some key things about their retirement income to avoid disappointment or running out of resources when they need it the most. Here are some important aspects that they need to consider.

1. Social Security Benefits:
Social Security is the most consistent source of income for baby boomers in retirement. Baby boomers need to understand how Social Security benefits are calculated and the age at which they will maximize these benefits. Delaying the Social Security benefits from the eligible age of 62 to 70 years will increase the amount they receive by around 8% per year.

2. Pension Plans:
Pensions plans are retirement benefits designed to provide income to the employees when they retire. However, pension plans have been gradually declining in popularity over the last few decades. Thus, baby boomers need to ensure that they comprehensively know the benefits of their pensions plans. They need to understand if their pension plan is a defined-benefit plan or a defined-contribution plan since the two function differently.

3. Retirement Accounts:
Baby boomers need to have retirement accounts, such as IRA or 401(k), which they contribute to monthly or yearly. Retirement accounts help to complement the Social Security benefits and pension plans, ensuring that baby boomers maximize their retirement income. Therefore, it would be prudent to review the retirement investment and determine the amount they need to contribute to their account to reach their retirement goals.

4. Healthcare Costs:
Baby boomers need to be prepared financially to cover healthcare costs, which could significantly reduce their retirement income. It is essential to consider enrolling in Medicare, but also, the premium payments for different Medicare plans can vary significantly. Therefore, it is essential to research the Medicare plans available and the one that will be the best fit.

5. Income Taxes:
Lastly, baby boomers need to understand their income tax situation and plan to minimize the amount of taxes they pay. They need to know the amount of income they will need to withdraw from their Social Security benefits and retirement accounts, which may affect their income tax rate. Additionally, they may be eligible for some tax breaks and exemptions they can take advantage of to reduce their taxable income.

In conclusion, baby boomers need to take the time to understand their retirement income sources and plan accordingly. Failure to prepare for retirement effectively could lead to financial stress later in life. Consequently, having a solid retirement income plan will enable baby boomers to enjoy a comfortable life in their golden years.