A sobering report on Americans' retirement prospects: Four in 10 older Americans rely solely on Social Security income in retirement, according to anew study from the National Institute on Retirement Security. The report found that only 6.8 percent of Americans receive income from a combination of Social Security, a defined benefit pension and a defined contribution account.
The report noted that Social Security benefits replace only about 40 percent of pre-retirement income, whereas most financial planners recommend at least a 70 percent income replacement rate for retirees. If Social Security income had been 10 percent higher in 2013, some 500,000 fewer older households would have been in poverty.
Without Social Security income in 2013, the report found, the number of older households receiving public assistance would have increased by nearly 45 percent. The number of older persons receiving Medicaid would have increased by more than 40 percent.
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