Gallup: Social Security Still Financial Bedrock for Retirees

Screen Shot 2018 06 02 at 08 37 17This is bad news. Social Security remains a critical resource for U.S. retirees’ financial security with the majority calling it a major income source. Nonretirees aren’t counting on it as much, but haven’t found a true replacement.

Retired U.S. adults are relying on a number of income sources in their golden years, although Social Security is the only one a majority (57%) calls a “major source.” Work-sponsored pensions and 401(k) or other personal retirement savings accounts rank a distant second and third. Fewer than one in five rely on any of several other sources, including home equity, regular savings accounts and part-time work.

Even if retirees don’t describe an income source as a major source in their retirement, many describe them as minor sources. As a result, more than half of retirees benefit at least to some degree from a 401(k), other savings, or a pension, in addition to Social Security. Roughly half tap into home equity or stock investments. But even on this basis, less than a third get income from annuities, an inheritance, part-time work or rent/royalties.

These findings, from Gallup’s April 2-11 Economy and Personal Finance survey, are broadly similar to what the poll has shown since 2001. A key exception is that retirees are now more likely to report that a 401(k) or other retirement account is serving as a major income source for them. The 27% rating it a major source today compares with 19% when Gallup first measured this in 2002. Meanwhile, Social Security has maintained its place at the top of the list of major income sources every year.

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Social Security Still Financial Bedrock for Retirees

Story Highlights Nearly six in 10 retirees rely on Social Security as major income source Pensions rank distant second with 35% relying on them Nonretirees put somewhat more emphasis on 401(k) type plans WASHINGTON, D.C. — Retired U.S.