Income Needs Will Force People to Work Into Retirement, Study Says

A study from Hearts & Wallets expects more people to stay employed into their retirement years, reports Financial Advisor . Income from employment accounts for 8 percent of all retirement income, and Hearts & Wallets predicts within several years 10 percent of all retirement income will be generated from working retirees. Retirees with pensions are the least likely to continue working, and 50 percent of those with pensions say they will stop working at a certain age, while 32 percent of those without pensions agree. Also anticipated is growing reliance on investment assets. Nationally, dividends from stocks and mutual funds account for 4 percent of retirement income for all current retirees and taxable brokerage accounts represent 2 percent of income; those figures are expected to double for future retirees. Presently, 4 percent of all retirement income comes from withdrawals from accounts such as IRAs, 401(k)s, 403(b), and 457. Those not yet retired expect 16 percent of their income to come from their retirement accounts. Just 1 percent of current retirement income is derived from real estate and future retirees predict it will increase to 3 percent. However, for those few retirees with real estate investments, 22 percent of their individual income comes from those assets. Social Security comprises about 50 percent of retirement income, and Hearts & Wallets says having a diversified income is optimal for retirement.