Faith in the Social Security System weighs heavily in the retirement planning of the under-40 set.
Some 81% of investors under 40 who expect to get only some or no Social Security benefits have 401(k) accounts, according to a PaineWebber/Gallup survey.
Among investors of the same age who expect to get all or most of the Social Security benefits to which they are entitled, about 59% have 401(k) accounts.
About 23% of the first group have tax-deferred annuities, compared with 6% of the second group.
The survey also found many Americans, even those with incomes of more than $100,000 per year, are using their tax refunds as savings vehicles.
The average savings rate among investors is 14.1%, compared with a national personal savings rate of 5.5% in February, the most recent month for which Commerce Department figures are available. About four in 10 investors said they invest more than 10% of their total compensation. Almost two-thirds said their rate of savings would be enough to meet their investment goals.
