Look at the survey results below. Americans are not prepared.
Is it time to give up? Should we conclude that most Americans are shortsighted, materialistic, undisciplined, or simply so poorly informed and thus they are incapable of planning and saving adequately for retirement?
Should we throw up our collective hands and surrender to the reality that government must do it for us? Should we just target 60-70% income replacement by Social Security, raise payroll taxes accordingly and move on to other things?
All but 5% of current retirees consider Social Security and a pension plan as their primary sources of retirement income, according to a Wells Fargo WFC 0.90% survey released Friday. More than six in 10 say Social Security is their primary source of income, and 22% say a pension is. Baby boomers aren’t far behind. More than 40% said Social Security will be their primary source of paying retirement expenses, and 19% said a pension plan (another 22% said they would rely on their 401(k) and individual retirement plan for this spending).
Less than a quarter of Generation X (21%) expect to use Social Security as a primary source of income, while 16% said pensions and 41% said a 401(K) or IRA. The survey, conducted by the Harris Poll on behalf of Wells Fargo, interviewed 2,700 working Americans between 18 and 75 years old (or older), and 1,000 retired individuals. Source: The 401(k) retirement is coming — are you prepared? – MarketWatch