It's a true generational shift: A new Wells Fargo survey of American retirees found that 86 percent live primarily on income from Social Security or a pension. By contrast, only 25 percent of millennial workers expect their primary source of retirement income to come from Social Security or a pension.
Just 5 percent of the retirees say their main source of income is a 401(k), IRA, or other personal savings vehicle. But things are changing fast: 45 percent of millennials say their future retirement will be funded by personal savings. Among baby boomers still working, 22 percent say they'll use personal savings.
Those younger generations are beginning to save for retirement much earlier than those before them. Today's retirees started saving around age 40, on average, while baby boomers still working started around age 36, Gen Xers at age 31, and millennials at age 25.
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