What is the total pension income John receives annually?

To determine the total pension income that John receives annually, it's essential to consider the different types of pension income he may have, including any retirement accounts, pension plans, or annuities. The correct answer indicates that John's annual pension income amounts to $15,000.

This total could be composed of various payments from retirement plans, such as a defined benefit pension plan, which guarantees a specific payout at retirement, or a defined contribution plan, which relies on the contributions made during an individual's working life and the investment performance of those contributions. It's also possible that the income includes payouts from IRAs or other retirement accounts.

If the total pension income is $15,000, this represents a clear understanding of John's retirement financial situation and demonstrates how he may rely on this income to cover living expenses in retirement. The intricacies of pension income, including tax implications and how to report this on a tax return, are also relevant for a comprehensive understanding of John's financial landscape.

Other amounts, such as $10,000, $25,000, or $5,000, do not accurately reflect the total pension income as stated in the context of the question, suggesting that those figures do not align with the sources of income available to John or the expected payouts