Social Security News
Young Investors More Worried than
Seniors About Social Security, Retirement
Older investors have much more
confidence in getting their Social Security than those under 50
24, 2014 - The latest quarterly survey by Wells Fargo/Gallup on investor
confidence has uncovered a surprising focus on the importance of Social
Security in the retirement plans of U.S. investors. Most think that with
Social Security they will be able to maintain their desired lifestyle
throughout retirement. But older investors are much more confident than
younger ones in Social Security and their adequate retirement resources.
Taking their savings and
Social Security income into consideration, a majority (69%) of the
investors say they are “highly” or “somewhat” confident they will have
enough money to maintain their desired lifestyle throughout their
However, nearly half (46%) are
“very” or “somewhat” worried about outliving their savings, including 50
percent of non-retirees and 36 percent of retirees. Retirees who run out
of money could become entirely dependent on their Social Security
“Clearly Social Security plays a
key role in thinking about retirement income, and concerns about the
government’s ability to address the system’s financial problems exist
for both retirees and non-retirees,” said Karen Wimbish, director of
Retail Retirement at Wells Fargo.
The Wells Fargo/Gallup survey
measures the perceptions of U.S. investors with $10,000 or more in
Six in 10 (58%) don’t think federal
lawmakers will address the financial problems with Social Security in
time to preserve the system for future retirees.
Two-thirds of younger investors
(67%), those under age 50, are especially pessimistic, saying lawmakers
will not fix the system.
These same investors are also much
more doubtful than older ones that they will ultimately receive their
full or even slightly reduced benefits in retirement.
A little more than a third (38%) of
investors between the ages 18 to 49 believe they will get most or all of
the benefits due to them under the current system, compared to 71
percent of those between the ages 50 and 64, and 73 percent among those
65 and older.
Despite these divergent perceptions
about whether Social Security will be there for them in retirement,
non-retirees on average expect Social Security to account for 26 percent
of their annual retirement income, while retirees, on average, report
that it currently accounts for 30 percent of their retirement funding.