Starting to think about how to fund retirement? With plenty of excellent options available, your retirement financial goals can be met, no matter your current phase in life. Here is a look at five traditional ways to plan for your retirement funds.

Pension

While somewhat of a dying breed, now found in some government and large corporation organizations, a pension is a payment made to you by your employer for retirement. The Balance notes these types of accounts are usually dependent on your age, years of service and your compensation and they are excellent benefits because they do not require the participant to submit additional funding. Jobs offering a pension are rare these days, but if you can find one, you will have a huge leg up adding funds to your retirement.

401(k)

If your job doesn't offer a pension, it likely will offer a 401(k) plan. A 401(k) is offered as a pretax or after-tax investment option for you to put your funds in where it will grow over time. Employers can also choose to contribute.

You can add "up to $18,000 per year plus an additional $6,000 catch-up contribution for those age 50 or older can be contributed annually," describes Forbes. "If an employer match is available, try to contribute enough to maximize it if unable to save the maximum $18,000/$24,000."

A 401(k) is a great plan for many, and the younger it is started the better, especially when an employer is willing to match a portion of your contributions.

Reverse mortgage

If you find yourself close to retirement and needing to supplement your account without having to sell your home, a reverse mortgage might be right for you. FSI Mortgage describes a reverse mortgage as a special kind of mortgage for homeowners who are 62 and older where you can borrow against your home without making a house payment for as long as you own and live in the home.

These equity payments can be accessed as a line of credit, monthly income payment or a lump sum. A reverse mortgage is a great way to free yourself from a mortgage expense, supplement your retirement income and have some extra cash set aside for a rainy day (or a cruise).

IRA

If your employer doesn't have a 401(k) set up, or if you want to give to your retirement above what the 401(k) annual limits are, an IRA is a good option for you. Think of it as a 401(k) but without the match from an employer.

With an IRA you will have two options: establishing a traditional IRA or a Roth IRA. "The main perk of a traditional IRA is that contributions are tax-deductible up to IRS limits, which means contributing to an IRA can reduce your annual tax bill," explains Nerd Wallet.

For a Roth IRA, "Contributions are made with post-tax dollars, meaning you can’t deduct them from your taxable income. The payoff of contributing to a Roth is in retirement your withdrawals are not taxed. A Roth IRA may be a good choice if you’re in a lower tax bracket now than you’ll likely be in the future."

If you don't know where to start, look at an IRA. They are easy to set up and you can start even as a minor (with a co-signer).

Annuities

Annuities are another long-standing popular option for retirement funding. Annuities are essentially insurance policies that you invest in for over the course of many years, and once your retirement is imminent, they begin to pay you back as a monthly, annually or lump sum payment for however long your insurance was set up.

While this can be an enticing option, CNN Money cautions to look at this option for retirement closely because of higher costs. Nevertheless, they can offer features otherwise not available such as guaranteed lifelong payouts.

If you are approaching retirement and wonder how your house and equity can serve you in your retired years, reach out to FSI Mortgage for additional information.

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