A new poll shows most investors who have yet to retire plan to rely on their retirement accounts when they finish working, while current retirees are putting far too much reliance on Social Security or pension plans.
Survey takers were asked by Gallup to rank how much they expect to rely on several sources of funding when they retire. Among investors who have not yet retired, an overwhelming 74 percent said they would turn to their 401(K), IRA or other retirement accounts as a "major source" of funds. The second-most popular choice for those consumers was stock market or mutual fund investments, followed by a work-sponsored retirement plan. Only 28 percent said Social Security would be their primary source of funding.
Comparatively, investors who have actually retired ranked Social Security (48 percent) and their pension (49 percent) as their major sources of funding.
Annuities or life insurance plans registered at similar levels for both groups, with each indicating their life insurance policy's place as a safety net for their retirement.
Too much reliance on Social Security could cripple retirees in the future, putting emphasis on a strong retirement plan backed by life insurance. Data shows the SSI program could run dry by 2037.