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What to Know About Fixed vs. Variable Income in Retirement
Trivia: Which 1970s rock band performed “Hotel California”?
RetireHub
December 01, 2025
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Today we’re sharing smart tips on What to Know About Fixed vs. Variable Income in Retirement, along with the best deals, fun trivia, and more!
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What to Know About Fixed vs. Variable Income in Retirement
As retirement approaches, one of the most important financial decisions you’ll make is how to structure your income. The right balance can help you feel steady, secure, and confident—no matter what the markets are doing. Two key concepts to understand are fixed income and variable income, each offering its own advantages and trade-offs.
Fixed income refers to money that arrives in consistent, predictable amounts. Think Social Security, pensions, annuities, or interest from certain bonds. Because these payments don’t change from month to month, they form a stable foundation you can rely on for essential expenses like housing, medications, groceries, transportation, and insurance. Fixed income lets you breathe easier because you know exactly what’s coming in, which makes budgeting simple and stress-free.
However, fixed income may not always keep pace with rising costs. As inflation increases, a fixed payment can lose purchasing power over the years. This is why many retirees combine fixed income with something a little more flexible.
Variable income is money that comes from sources that can change based on the economy or the performance of your investments. This might include dividends, rental income, part-time work, withdrawals from IRAs or 401(k)s, or returns from mutual funds. Variable income can grow over time, helping your nest egg stay ahead of inflation and giving you the chance to increase your spending when markets are strong.
The downside? Variable income is, by its nature, less predictable. Investment returns go up and down, and some months may look very different from others. This doesn’t mean it’s unsafe—it simply requires planning. Many retirees address this by only pulling variable income from investments during “good years” and relying more heavily on fixed income during downturns.
The smartest retirement plans blend the two. A common approach is to cover essential expenses with fixed income, while using variable income for discretionary spending—travel, hobbies, gifts, or home upgrades. This mix offers both stability and flexibility.
Working with a financial advisor can help you determine the right balance based on your risk comfort level, health, lifestyle, and long-term goals. Retirement isn’t one-size-fits-all, and your income strategy shouldn’t be either. Understanding these two income types empowers you to build a retirement plan that supports your needs today and keeps you confident about tomorrow.
Which income mix feels most comfortable for your retirement? |
Yesterday’s Poll Results: Would you ever consider having an international pen pal?
It turns out the love of old-school letter writing is alive and well! A strong 38% of readers said they’d absolutely love to have an international pen pal, proving that snail mail still has plenty of charm. Another 21% are open to the idea if the right match comes along, and 23% said it’s not for them personally but they adore the concept for others — wholesome energy all around. Meanwhile, 13% prefer to stick to digital communication, and a tiny but enthusiastic 3% already have a pen pal across borders. Only 1% chose “Other,” making this one of the most letter-loving polls yet!
TOP COMMENTS
“My husband was in the US AIR FORCE and our family spent 10 years in Germany. I would love European pen pals”
“Digital communication is quicker, at least in theory, so I prefer that.”
“I would love to have a pen pal- sometimes I am lonely.”
“I had a pen pal from England when I was very young. I believe in the early 1960s. We wrote for many years. And he even came to visit at my parents house for a while. We lost touch. I am now in my 70s and would love to reconnect with him. Can't find him by googling his name as his name is very common. Any suggestions?”
“This sounds like so much fun! I would even love to have pen pals from around the US.”
“It would be awesome to connect with someone across the seas! It would bring out my creativity and would be able to learn about someone and their culture.”
Harnessing the Power of Thought: Why What You Think Shapes How You Feel
Many of us assume that external events — financial worries, health problems, or stress — are the main cause of anxiety and unhappiness. But our inner dialogue plays a much bigger role than we realize: it’s actually the stream of recurring thoughts and self-talk that often fuels our emotions. By becoming aware of these thoughts, evaluating whether they are helpful, and deliberately replacing negative or unhelpful ones with more constructive perspectives, we can reduce anxiety, improve mood, and reclaim a sense of calm and control over our lives.
Instead of letting thoughts run automatically — which is how our brain tends to operate, favoring habits and efficiency — it’s possible to “edit” what we believe. Over time, this shift in thinking can reshape not just mental habits, but emotional responses, decision-making, and overall wellbeing.
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Slang Phrase of the Day
Phrase: Radiant rests
Meaning: A warm, uplifting phrase that means taking peaceful, nourishing breaks that leave you feeling refreshed, restored, and glowing — inside and out.
In a sentence: “After my morning walk, I make time for my radiant rests — a cozy cup of tea, a comfortable chair, and a few quiet minutes that make the whole day feel brighter.”
Good News of the Day
Rescued Otter Pup Returns — and Greets Her Rescuer from the Water Each Time He Visits
In a heart-warming story from Sweden, a man who rescued an orphaned baby otter watched in amazement as the wild animal returned to him after being released in a lake — repeatedly climbing into his kayak each time she saw him. The pup, once in critical condition and cared for by her rescuer, learned to swim and survive in nature, yet kept the bond through her visits. Their unique friendship shows how compassion and trust can create enduring connections between humans and wildlife — even after release back into the wild.
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RetireHub Trivia
Want more trivia? Play our “Nostalgia Trivia Game” on our site! We add fresh questions daily, so there’s always something new to test your knowledge.
Not into trivia? No worries! We’ve got plenty of other fun games to enjoy, like:
Which U.S. state is home to the Redwood National and State Parks? |
Which 1970s rock band performed “Hotel California”? |
In the 1950s, what household product became famous for its slogan “Look Ma, No Cavities!” after a wildly successful ad campaign? |
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