Ten years after the financial crisis and recession, middle-income Boomers are increasingly reliant on Social Security for their retirement income, according to a new study that details the mindset of current and soon-to-be retirees.
The Financial Crisis Strikes Boomers
The proportion of middle-income Boomers who expect to rely on Social Security for their primary source of retirement income has risen from less than one in three (30%) before the financial crisis that began in 2007 to four in 10 (38%) today, according to the study, “10 Years After the Crisis: Middle-Income Boomers Rebounding But Not Recovered,” commissioned by Bankers Life Center for a Secure Retirement (CSR).
Not surprisingly, then, fewer middle-income Boomers – just over three in 10 (34%) – plan to rely on personal savings or earnings (retirement accounts, general savings and investments, and employment) for their primary source of retirement income, compared to about four in 10 (43%) before the crisis.
Unfortunately, too many people are unaware that Social Security was designed to be a safety net, not a primary replacement for savings or income. The best way to reduce reliance on Social Security for retirement income, middle-income Boomer or otherwise, is to develop multiple streams of income during your working years and ensure your retirement plan will generate multiple streams of income once you leave the workforce.
You can read the entire report online here.