Many Investors Expect Social Security to Be a Major Source of Retirement Income

BOSTON - (BUSINESS WIRE) - More than a third of Baby Boomers surveyed said they expect Social Security to be a "major source of income in retirement." Yet only one in four have confidence the system will have money to pay benefits throughout their retirement; nearly 40 percent were not at all confident, according to the latest MFS Investing Sentiment Survey.

Moreover, most investors recognized the importance of personal savings and investments in funding their retirements, ranking it higher than all other sources cited. Yet Baby Boomers, who at the median are only 8 years away from retirement, have very little saved for retirement; only 12 percent of respondents had $1 million or more saved in retirement accounts, and the median balance was $314,000.

"The survey findings point out a big disconnect between what investors say they plan to live on in retirement, and what they actually can count on for that income. Advisors have an opportunity to help their clients focus on solving for this critical shortfall before it's too late," said William Finnegan, senior managing director and head of Global Retail Marketing for MFS.