Concerns about shortfalls in traditional 401k and IRA retirement income sources like Social Security and pension plans have caused people to expect to rely more heavily on personal savings to fund their retirement. The graph illustrates that while only 50% of current retirees utilize their personal savings for retirement income, 65% of current workers anticipate personal savings to play a role during retirement. Further, 73% of workers expect to receive retirement income from an employer-sponsored retirement savings plan, while only 51% of those already retired actually receive income from such a source.
It may be a good idea to plan for a diminished reliance on Social Security or a pension plan. Whatever extra funds you save by taking this more conservative view will make retirement all the more enjoyable.
Information is provided 'as is' and solely for informational purposes, not for investment purposes or advice. BrightScope is not a fiduciary under ERISA. BrightScope is not endorsed by or affiliated with FINRA.