Seniors Are Relying Too Much on Social Security as Main Source of Income

A survey by the Nationwide Retirement Institute found 44 percent of 1,315 older Americans who are retired or plan to retire within a decade consider Social Security their main source of retirement income, reports USA Today . Nationwide Financial's Tina Ambrozy says last year's survey estimated that 55 percent had complete faith in Social Security. A strong market has probably fortified older Americans' retirement accounts, making dependence on Social Security less necessary for some. However, although people planning to retire within 10 years expect to receive an average $1,805 monthly in Social Security benefits, current retirees are getting 28 percent less ($1,408 a month, on average). One factor is retirees tapping benefits early, giving them a lower monthly payout. Seventy percent of respondents think they qualify for full benefits before they actually do, while 26 percent believe claiming early will make their benefits automatically increase when they reach full retirement age. The reality is retirees can only receive partial benefits starting at 62, and once they do, the amount is fixed. Ambrozy adds that 66 percent of future retirees are concerned about the depletion of Social Security funding in their lifetime, which also motivates them to draw on their benefits early.