In spite of increased warnings and media coverage about the real danger that Social Security could go into default in the coming years, many Americans, 23%, believe Social Security will be their primary source of income in retirement, according to a survey of 1,000 people by the Retirement Corporation of America, a registered investment advisory firm.
Nearly six in 10, 59%, believe they will reach their savings goal, but only 31% believe that their own savings will be the primary source of that income. Sixty-one percent believe they will need $500,000 or more when they retire.
“It is not surprising that many Americans believe they will have enough money to retire,” said Daniel Kiley, chairman and chief compliance officer of the organization. “Increased life expectancy has driven many to work for a longer period of time, offering a greater chance of achieving financial retirement targets. However, as traditional source of retirement income, such as company pensions and Social Security, dwindle by each passing day, more Americans will have to take charge of their finances and begin planning and investing to generate alternate streams of income.”