Of the remaining respondents:
- over a third opposed privatization
- 22% were unsure.
The survey, titled Retirement Savings in an Unsettled Economy, was conducted by Putnam Investments and comprised the responses of 1,500 US citizens who hold retirement accounts.
Results showed that respondents’ views on the direction of Social Security policy varied markedly across demographic divides. Specifically:
- younger investors tended to favor privatization Investors in the 18 to 34 age group favor privatization by 43%, while 28% disagree
- 37% of respondents, 55 and older, are for Social Security privatization while 47% are against it
- half the male respondents favored privatization, compared to the 32% who opposed it
- 30% of women are in favor and 40% are against it.
Sources of Income
Results also show that a 401(k) plan will be the primary source of retirement income for 28% of those polled, IRAs were noted by 16% of respondents, while Social Security was cited by 14%.
Once again, responses differed across demographic lines, with almost a quarter of the older group relying on social security, 20% citing defined benefit plans, 14% listing IRAs and only 9% mentioning 401(k)s.
In the second group, comprising respondents aged between 35 and 54, 30% cited 401(k) plans, followed by 14% who will rely on IRAs and 14% who will rely on Social Security.
Defined contribution plans came on top of the list for investors in the youngest demographic, with 38% citing 401(k) plans. Further, almost 20% cited IRAs, while only 7% listed Social Security.