Expectations For Funding Retirement With Home Equity Drops Significantly, More Reliance On Social Security

The latest results from a Gallup poll show that the expectations on funding retirement living have significantly changed when compared to results from 10 years ago.  Non-retirees still commonly say IRAs and 401(k)s will be a major source of retirement income (45%), followed by Social Security (34%), work-sponsored pension plans (23%), saving accounts or CDs (22%), home equity (20%), and individual stock investments (20%).  Home equity as a funding source decreased from 30% in 2007 to 20% in 2010 and much of that decrease can be directly attributable to the plummet in housing values since 2007 across the United States.

According to the survey, 34% of non-retirees who say Social Security will be a major source of income in their retirement is the highest Gallup has measured since 2001, the first year the annual Gallup Economy and Personal Finance survey was conducted. Prior to 2008, between 25% and 29% of non-retired Americans expected Social Security to be a major source of retirement funding, but that number has been at or above 30% in each of the last three years.

Americans Shift Expectations About Retirement Funding