Retirement income planning is something that most people prefer not to think about until it's too late. Sensible retirement income planning doesn't have to be complicated, but it's certainly true that a savings plan and investment strategies started well before retirement can make all the difference in maintaining a high quality of life past 65.

The first question most people ask when they start thinking about retirement planning is, exactly how much income is needed for retirement? The answer depends on the type of lifestyle that is to be maintained, as well as health questions, family, whether or not there's still a mortgage, and whether travel plans or other large purchases feature into a person's retirement income needs.

It's easy to use one of the "retirement income calculators" available online to do a rough estimate of the amount of retirement income that's needed. For the best accuracy, though, it's a good idea to speak with a qualified retirement income planner who can suggest easily overlooked necessities that should be factored in.

Although older generations have depended on retirement savings in the form of pension plans, investments, and annuities, younger generations may have more options when it comes to retirement income planning. Some of the possibilities include:

Not sure where to start when it comes to retirement income planning? Figure out the best retirement investment strategies & how much income will be needed for retirement.

•   Government or Company Pension Plan: Under certain circumstances, it's possible to receive as much as 70% of preretirement income from a good pension – if and only if a person works at the same job for 20 to 30 years, which is becoming rare.

•  Savings Account: There's no risk of losing retirement funds when they're in a bank account, but the amount those funds can buy decreases over time with inflation.

•  Stocks, Bonds, GICs, and Other Investments: A good investment portfolio can make enough passive income to support a family through retirement – or it might break even, or lose money if the economy takes a downturn. Even low-risk investments come with risk.

•  Annuity: An annuity is a retirement investment vehicle that works like the opposite of a mortgage. The investor pays a lump sum into the annuity and it pays out pre-arranged monthly, quarterly, or semi-annual or annual payments of principle plus interest.

•  Reverse Mortgage or Cash Out of Home Equity: Anyone who has paid off their house's full value before reaching retirement can withdraw retirement income funds from their home's equity (usually via a "reverse mortgage") to take advantage of the savings they have invested in the house. Even retirees who have mortgage payments can refinance to increase their mortgage and use home equity as retirement income.

•  Passive Income Streams: Certain businesses, such as multilevel marketing or writing, continue to pay out income long after retirement, so long as there is need for the product or service. Book authors can receive royalties forever so long as their books are still in demand, making this an excellent retirement income strategy.

•  In considering retirement income planning, it's important to factor in the tax that must be paid even after retirement. For the best advice and to pursue retirement income options, contact a financial planner who specializes in retirement income planning.