mer EcoRO three-legged stool for retirement savi What sources of income make up the three- legg ings? Solution Sources of income that make up the three legged stool for retirement savings: Social security, Retirement plans and Personal savings. Stool leg 1 : SOCIAL SECURITY: Social security was designed to provide a minimum level of support . That is why it is also known as social insurance. For every dollar a person earn , the government takes a percentage to support social security . Your employer is also required to pay the same amount. When a person retire , having a history of higher esrnings means social security will replace less of pre- retirement income. Stool leg 2 : RETIREMENT PLANS: Retirement plans come in two forms: defined benefit and defined contribution. Defined benefit pays you a retirement income and is usually paid in full by your employer. Defined contribution plan provides an annual contribution to an account in your name, based on your annual salary. Stool leg 3: PERSONAL SAVINGS: Retirement income will depend on person\'s savings..