Top 3 Sources of Retirement Income — Which One Are You Using?

Core Insights - A significant focus for Americans is saving for retirement, with a desire to thrive financially in retirement and rely on multiple income sources [1] Retirement Income Sources - The most common expected source of retirement income is from 401(k) or 403(b) plans, with 85% of respondents indicating this as their top choice [3] - Financial experts highlight that tax-deferred retirement plans are a major source of wealth for retirees, with potential substantial growth due to stock market performance [4] - A hypothetical scenario suggests that contributing $10,000 annually to a 401(k) over 40 years could yield nearly $3.5 million if invested primarily in stocks [4] - However, reliance on tax-deferred accounts may lead to significant tax burdens in retirement, limiting tax flexibility and increasing exposure to required minimum distributions [5] Social Security Insights - Social Security is the second most expected source of retirement income, with 75% of respondents anticipating it will be a key income stream [5] - Employees planning to collect Social Security expect to do so at an average age of 66, but only one-third understand the benefits [6] - As of May 2025, only 45% of employees plan to rely on Social Security, with concerns about the sustainability of benefits and a lack of confidence in Social Security as a future income source [6]