Social Security is the most common source of income among those age 65 and up, with 93 percent of households receiving payments. Image: Lane V. Erickson/Shutterstock.com
By: FEDweek StaffSources of income change in retirement change over time although at every point Social Security is a major consideration, for those eligible for it, a report for Congress shows.
While numerous reports have focused on how spending patterns change with aging, the Congressional Research Service study breaks down income patterns over time, looking at sources such as earned income and income from annuities and retirement savings plans.
Overall, it added, Social Security is “the most common source of income” among those age 65 and up, with 93 percent of households receiving payments from the program. It also is “the largest single-source of income,” accounting for 28 percent of income for all persons in that age category. That ranged from 83 percent of income for those in the lowest one-fifth of income to 11 percent for those in the top fifth.
Overall, annuities and retirement savings accounted for about another 26 percent, earnings for 24 percent, and asset income for 14 percent, with other forms of income accounting for the rest.
That mix changes over time, however. Most notably, it said that while 59 percent of those ages 55-69 have at least some income from earnings, that declines to 39 percent at age 70-74, 25 percent for those 75-79, and 10 percent for those 80 and above.
Also, only 83 percent of those in the 65-69 range draw Social Security and only 51 percent draw from annuities and retirement savings. In the three older age groups, about 98 percent draw Social Security and around 65 percent draw from annuities and retirement savings. The percentage drawing income from assets is about steady across all age groups, though, at about 55 percent.
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