This 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.
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.