Employees relying on retirement saving accounts and Social Security

Retirement savings accounts, such as 401(k) and individual retirement accounts, were the most popular expected source of retirement income for employees, according to a recently released survey of employees and employers conducted by the Transamerica Institute in November and December. Social Security, named by 63% of employees, was the next highest option chosen.

Employees at medium-sized and large organizations cited retirement savings accounts at a higher rate, 71% and 78%, respectively, compared with those at small companies (54%).

When asked about their primary source of income, 38% of all employees cited retirement accounts. The response varied by employer size, ranging from 29% for those employed at small companies to 45% for workers at large employers. Nearly a quarter of all employees, 23%, expect Social Security to be their primary retirement income.

For employees offered a workforce retirement saving plan, 79% participated overall. It was 79% and 82%, respectively, for workers at medium-sized and large companies and dipped to 72% for those working at small companies.