Social Security Dependence Reveals Retirement Income Vulnerability

Even if retirees have an employer-sponsored 401(k) plan, Social Security is still likely to be their main source of income during retirement. According to ZipRecruiter’s 2026 “Retirement Reality Report,” 71% of fully retired respondents relied primarily on Social Security for income.

That dependence far outweighed other income sources for retirees. Just 14% of fully retired workers said pensions were their primary source of retirement income, and only 4.3% said their 401(k) plan was their main income source.

“The high share of retired adults [age] 60 [or older] that rely primarily on Social Security points to this program being a vital lifeline to this population,” wrote Nicole Bachaud, a labor economist at ZipRecruiter, in an email to PLANADVISER.

According to the report, concentrating retirement income in a single government program represents a systemic vulnerability across the U.S. retiree population.

Once respondents did retire, their financial reality often proved stark. Only 49% of fully retired respondents said their savings were enough, and 42% of fully retired adults said their savings fell short of their usual lifestyle.

“As the U.S. population continues to age, net immigration falls, and birth rates remain low, there will be increased pressure on the funding mechanism supporting Social Security, which could lead to a reduction in payments within the next decade if there is no direct policy intervention,” wrote Bachaud. “Many older Americans are finding themselves stuck in or back at work to make ends meet, and younger workers can focus now on setting up their own retirement plans to stay one step ahead.”

The report also highlighted a gap in retirement readiness. Median retirement savings for all respondents age 60 and older was $100,000, while mean savings exceeded $639,000, reflecting how retirement wealth is concentrated in a relatively small group.

Average retirement savings rose in relation to a respondent’s degree of retirement, with low savings contributing to the decision to keep working, according to the report. Fully retired respondents reported median retirement savings of $100,000; semi-retired respondents had median savings of $80,000; and unretired workers age 60 and older reported median savings of $50,000.

The findings also underscored for plan advisers a growing need to help workers maximize workplace retirement benefits. The report recommended workers seek employer 401(k) matches of at least 6%, negotiate for the highest available match and contribute consistently.

Younger investors who are just beginning to save or who have only recently started contributing are encouraged by experts to take early, critical action.

“Take advantage of compound interest and start saving and investing now,” said Sam DeMase, ZipRecruiter’s career expert, in the report.

Bachaud echoed the recommendations: “Set a goal and start saving early, look for 401(k) matches with employers and maximize those matches whenever possible.”

The market research company Pure Spectrum conducted ZipRecruiter’s survey from February 11 through March 7 among 1,500 U.S. residents aged 60 and older who had previously worked. Respondents included fully retired, non-retired and semi-retired individuals.