Less than half of retirees are using personal assets for retirement income, according to a study released Monday by Hearts & Wallets.
For a quarter of retirees, withdrawals from retirement accounts make up only about 17% of their income. Other sources include Social Security, pensions if they’re lucky enough to have them, dividends and interest, annuities, real estate and returning to work.
“Many Americans view their assets for use only in an emergency rather than as a ‘retirement income source,’ a beloved industry term that isn’t used in casual conversation by ordinary people,” Laura Varas, a partner with Hearts & Wallets, said in a statement.
Just one-third are between 65 and 74 years old, according to the survey, and 87% have less than $500,000 in assets. Those with more than $2 million are only 3% of retiree households, according to Varas.
“It’s not possible to understand retirees as a homogenous group. Some have pensions, others simply haven’t saved enough to produce substantial income, and still others, of all wealth levels, are successfully funding their lifestyles with different types of savings or annuities,” Varas said.