401(k) Specialist Issue 1 - 2020 - 39

401(k) SOCIAL SECURITY STRATEGIES
* Social Security is an important income source for 7 in 10 recent
retirees. According to Secure Retirement Institute research, it
makes up 37% of their total income on average.
Source: Secure Retirement Institute
* More than one in four workers (28%) expect to rely on Social
Security as their primary source of income in retirement, including
Boomers (42%), those with household income of less than
$50,000 (40%), noncollege graduates (35%) and women (32%).
Source: Transamerica Center for Retirement Studies
* Only 55% of Millennials are confident that Social Security
will provide them with meaningful income in retirement.
Source: Insured Retirement Institute
* Among retired workers who collected Social Security benefits
based on their own work records, men ($1,627) receive a higher
average monthly benefit than women ($1,297).
Source: Social Security Administration
* There are now only 2.8 workers per Social Security beneficiary
compared to 3.3 as recently as 2007. The Social Security
Administration estimates Social Security benefits will start
to exceed the program's costs in 2020, and the program will
deplete its $2.9 trillion reserve fund in 2035.
Source: MLive
Retirees Counting on It
* 40.2% of Americans ages 60 and up rely solely on Social Security
for retirement income.
Source: National Institute on Retirement Security
* Unmarried men (39.2%) and women (42.3%) are more likely
to rely on Social Security for their sole source of retirement
income. That's in comparison to 23.8% for couples.
Source: National Institute on Retirement Security
* 21% of married couples and 45% of single people receiving
Social Security retirement benefits rely on the program for at
least 90% of their income.
Source: MLive
* The income " replacement rate " from Social Security will slip
to about 35% for a medium earner retiring at 65 in the future,
chiefly because the full retirement age, which has already risen
to 66, will climb to 67 over the 2017-2022 period.
Source: Center on Budget and Policy Priorities
Cost-of-Living Adjustment
* The 2020 Social Security cost-of-living adjustment (COLA)
is 1.6%, which begins with benefits paid to more than 63
million Social Security beneficiaries this month. For an average
retiree who gets a monthly check of $1,460, that adds up to an
additional $23.40 a month, according to The Senior Citizens
League. In 2019, recipients received a 2.8% COLA, or an average
$40.90 more each month than in 2018, the most since 2012. But
because inflation has moderated over the past year, the COLA
increase isn't as large for 2020.
Source: The Senior Citizens League
ISSUE 1 2020 | 401kSpecialist.com
39
© motortion | Dreamstime.com
© calypsoArt | Dreamstime.com
© Mirko Vitali | Dreamstime.com
http://www.Dreamstime.com http://www.Dreamstime.com http://www.Dreamstime.com http://www.401kSpecialist.com
401(k) Specialist Issue 1 - 2020

Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2020
