Household income and age are primary factors in how nonretired Americans expect to fund their retirement, according to a Gallup poll released Monday.
Upper-income nonretirees are much more likely to count on their investments such as a 401(k), IRA and other retirement savings accounts or individual stock investments, and work-sponsored pension plans, the survey found. Lower-income respondents were most likely to say Social Secutiry and part-time work will be the major sources of their retirement income.
Nearly half (46 percent) of all nonretirees surveyed said that a retirement savings plan will be their major source of retirement funds, followed by Social Security (30 percent), a savings account or CDs (25 percent), a work-sponsored pension plan (24 percent) and part-time work (21 percent). Other sources cited were home equity, individual stock or mutual fund investments, annuities or insurance plans, inheritance, and rent and royalties.
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Nearly two-thirds (65 percent) of surveyed nonretirees with an annual household income of at least $75,000 said they would be expecting their retirement savings accounts to be their major source of retirement funds, compared with 26 percent of those with an annual household income of less than $30,000. Forty-two percent of these nonretirees are counting most on Social Security to fund their retirement, vs. just 17 percent of the wealthiest households surveyed. Similarly, 27 percent of the under $30,000 households plan on working part time in their retirement, compared with just 11 percent of respondents with an annual household income of at least $75,000.
Age, too, is a factor in retirement income expectations, Gallop found, with just 19 percent of Millennials expecting that Social Security will be a major source of their retirement funds, compared with more than four-in-ten of baby boomers and seniors surveyed. Younger people, too, are more likely than their older counterparts to say they expect to be working part-time in retirement.
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