Winter 2011
Research Reveals Retiree Income Sources
Research conducted by the Employee Benefit Research Institute (EBRI) confirms that Social Security is the largest income source of those ages 65 and older. EBRI's analysis of the U.S. Census Bureau's 2009 Current Population Survey indicated that, on average, sources and proportions of income were:
| Social Security | 40% |
| Earnings | 26% |
| Pensions, annuities | 19% |
| Assets | 13% |
| Other | 1% |
Nearly 90 percent of those age 65 or more were receiving Social Security, 55 percent had income from assets, 35 percent received income from pensions and/or annuities and 20 percent had earned income.
The role played by Social Security and other sources of income was starkly different between the lowest ($8,956 income in 2008) and highest ($38,468 income in 2008) income categories.
In the lowest group, Social Security represented 89 percent of income, but only 17 percent in the highest group. Pensions and annuities were 3 percent of income in the lowest group and 23 percent in the highest group. Assets made up only 4 percent of income for the lowest group and 18 percent in the highest.
This analysis would seem to confirm the need to stress to employees that Social Security benefits must be supplemented by savings and other sources of income for a financially secure retirement.
See the complete EBRI analysis.
