“40% of Older Americans Rely Solely on Social Security for Retirement Income,” by National Institute on Retirement Security, Advisor Magazine

 

Quote:
“Only a small percentage of older Americans, seven percent, receive income from Social Security, a defined benefit pension, and a defined contribution account. Retirement income from these three sources is widely considered to be the ideal situation to ensure retirement security, particularly for the middle class. Retirees with these three sources of income are far less likely to face poverty and economic hardship. A new report also finds that a large portion (40 percent) of older Americans rely only on Social Security income in retirement. … These findings are contained in a new report from the National Institute on Retirement Security (NIRS), Examining the Nest Egg: The Sources of Retirement Income for Older Americans. The report is co-authored by Tyler Bond, NIRS manager of research, and Dr. Frank Porell, University of Massachusetts Boston professor emeritus. Download the report here. Register here for a webinar scheduled for Wednesday, January 15, 2020, at 2:00 PM ET”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

What reports like this miss entirely is what might have happened if Social Security hadn’t come along in 1935 and given aging Americans a false sense of security about retirement. Would people have saved, invested and insured privately more responsibly so that they’d be better off now than they are in our current entitlement state? When Social Security has to cut benefits 23% in 2035, the answer to that question will be indisputable.