Funding retirement faces new challenges
Concerns about shortfalls in Social Security funding and the movement away from pension plans have eroded public confidence in the ability of these traditional sources to fund a comfortable retirement. This has prompted investors to save more and examine other retirement income options.

Sources of retirement income are shifting
A recent survey shows that current workers expect to rely more heavily on personal savings to fund their retirement than current retirees.

Actual and expected sources of income presented as "personal savings/other" in the graph above include:

• Workplace retirement savings plan (4% [R]etirees, 14% [W]orkers)
• Personal savings or investments that are not in a work-related retirement plan (11% R, 20% W)
• Employment (2% R, 6% W)
• Sale or refinancing of your home (1% R, 3% W)
• Inheritance (1% R, 3% W)
• Lump-sum distribution from an employer provided cash balance or defined benefit plan (3% R, 1% W)
• Support from children or other family members (1% R, 2% W)
• Don't know/refused to answer (6% R, 3% W)

Take control of your savings plan
Unless major revisions are made, Social Security's trust fund is projected to be depleted in the year 2040. It is extremely important to examine your retirement needs and understand what other vehicles are available to fund retirement. The more prepared you are, the smaller the retirement income gap you may face. Finding that funds fall short at or near retirement can be an unwanted surprise. Retirement savings plans such as IRAs and 401(k)s are replacing pension plans and provide investors with a hands-on approach to saving for the future.

This is for illustrative purposes only and not indicative of any investment. Expected sources of income during retirement taken from a survey of current workers and current retirees. The responses to that survey are the opinions of the participants involved.