A new survey conducted by Ernst & Young LLP for Americans for Secure Retirement shows more than half of new middle-class retirees will outlive their savings. People who depend entirely on Social Security for guaranteed income have a 90 percent chance of running out of income in retirement. The survey also found those looking at retirement from five to 10 years away were more likely to outlive their savings than people who are currently at retirement age. New retirees will have to reduce their standard of living by about 24 percent and future retirees will have to cut back by about 37 percent in order to minimize the risk or running out of income in retirement.
The study found Social Securty is the main source of income for many retirees, accounting for 40 percent of expected retirement income. Pensions and annuities make up 20 percent of retirement income.
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