Retirement advisors banking on a windfall of business as boomers phase into retirement may find themselves waiting for the phone to ring.
That’s because retirees apparently still heavily rely on Social Security and pensions to fund retirement income.
A Vanguard survey of 2,600 households with at least one retired person aged 60-79, and at least $100,000 of assets, shows that nearly half of retirees’ income comes from the fixed sources of Social Security (28 percent) and their public or private pensions (20 percent).
The respondents’ median income was $69,500, with median financial assets of $395,000.
Tax-deferred accounts like IRAs, where a lot of 401(k) rollovers are invested, were the majority source of income for 21 percent of those surveyed.
Vanguard’s analysis of wealthier retirees revealed several profiles of retiree income investors, determined by the dominant sources of retirement income.
Half of those surveyed fell into the “Traditional Retirement” investor group, where income is dominated by guaranteed sources like Social Security and pensions.