69% of Seniors Say Social Security ‘Critical’ to Retirement Plans

More than two-thirds of seniors say that Social Security benefits are critical to their retirement planning according to a new survey, while a plurality said their biggest financial regret from their younger days was not saving enough.

The April survey was conducted by LendEDU, an online student loan refinancing marketplace, which sought the opinions of 1,000 seniors over the age of 65 on a variety of savings and retirement-related matters. Nearly 55% of those people told the company that they had not saved enough money for retirement, as compared to just 26.6% who said they had; the remaining 18.8% replied that they weren’t sure.

“It came as quite a surprise that so many senior citizens believe they are not aptly prepared for life after work, when they should be enjoying warm weather and leisure activities,” the company observed.

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While the overarching aim of the survey was to teach millennials the importance of saving early for retirement — 21% of respondents, for instance, said they regretted not saving enough for their retirement in their 20s, while 17% said they spent too much on non-essential purchases — it also reveals the extent to which many seniors do not have a diversified safety net.

When asked if Social Security benefits were “a critical component” of their long-term strategies, 69.1% said yes, with just 18.7% saying no and 12.2% saying they weren’t sure.

“Considering many of LendEDU’s respondents are not sufficiently prepared for retirement, having life insurance or access to Social Security benefits could become quite pivotal for living comfortably in their later years,” the company noted.

The LendEDU analysis comes on the heels of a similar report from the Social Security Administration, which found that a quarter of U.S. residents aged 65 and older drew 90% or more of their household wealth from Social Security alone.

Check out the full survey results at LendEDU.

Written by Alex Spanko

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  • You better believe it social security plays a major factor in seniors retirement living! Look at the amount of seniors that have lost their jobs to early in their lives, to no fault of their own. Technology has played a big part in this!

    Many seniors have lost their retirement incomes, lost their jobs way earlier than they expected to and getting jobs of any great value for people 60 or older is becoming more difficult every day.

    Many, many seniors have not planned properly for their retirement, some, I have to admit, to the fault of their own and many not to their blame.

    The survey is right, However, this is exactly why the HECM can be a life saver for so many seniors, this is exactly why, we need to educate them more today than ever!

    We as industry representatives need to understand and be educated on our product to the fullest. We need to have passion, we need to spend time with as many seniors as we can to educate them on the benefits of a HECM!

    Believe it or not, seniors know less today than ever about a HECM, they are also confused about them due to all the changes!

    We in the industry need to be holding as many educational workshops as we can in our communities, those we partner up with, senior recreational centers and more!

    don’t tell me we are a dying industry, don’t tell me seniors don’t need our product! We are short selling our seniors and ourselves by taking the negative attitudes we have for the past few years, especially over the past 9 months, ever since we heard of the new ruling.

    We owe it to our seniors and ourselves to take the positive approach in our actions, our thoughts and our speeches.

    Those who can’t do this, need to get out of the business, it is not fair to our seniors, we have a great product to help improve their lives!

    I am sorry to be so bold but it has been one of those Mondays my friends!

    John A. Smaldone
    http://www.hanover-financial.com

    • What you shared is absolutely true, if we as a community of Reverse Specialists do nothing to preserve our product, it needs to die. I for one am not prepared for that to happen.I just wish I had more years to give to my fellow Seniors.

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