Tuesday, May 21, 2013

Seeking Retirement Income

What will be the source of your retirement income? Gallup recently asked more than 2,000 American adults that very question, and the top answer, not surprisingly was a 401(k), IRA, or other retirement savings account. But what may be surprising is that less than half of Americans - 46 percent  - cite those accounts as a major source of income in retirement.

So what else is there? Thirty percent say they plan to rely on Social Security; 24 percent on a savings account, and 21 percent on part-time work. Only 9 percent planned to derive significant income from annuities or other types of insurance plans.

The responses differ greatly as you move up the ladder in income. For upper-income people (those who currently have more than $75,000 in annual income), 65 percent of them cite a 401(k) as a major source of income, up from the 46 percent overall rate. And the number in that cohort citing Social Security drops all the way down to 17 percent.

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