The TIGTA report examined retirement trends over three decades: from 1977 to 2007.
Overall, the government found that Americans are increasingly participating in employer-sponsored retirement plans (like 401k plans), and that the value of retirement plan asserts grew dramatically during this 30-year period.
Despite those positive factors, pension assets – where employers give workers a guaranteed or defined benefit amount – averaged just $62,600 per individual in 2007. For anyone contemplating a long and comfortable retirement, $62,000 isn’t a lot of money.
That’s why the TIGTA concludes that “many retirees will continue to rely on Social Security and other forms of income for retirement and may run the risk of outliving their retirement assets.”
Making matters worse, TIGTA found that “more individuals are withdrawing retirement savings before retirement.”
According to current federal estimates, the Social Security system is currently so badly broken that if nothing is done to fix it, it will run out of money in 2037.
So if you’re counting on Social Security to serve as your primary source of income in retirement, good luck with that.