Here's an which compares the percentage of retirement income the government says Social Security should provide to how much it's actually used for. The details:
Data from the Social Security Administration (SSA) shows that 61% of retired workers count on their benefits to provide at least half of their monthly income. For unmarried elderly individuals this figure jumps to 71%.
Yet according to the SSA, Social Security benefits are only truly designed to replace about 40% of the average worker's wages during retirement.
It's not surprising that people are over-relying on Social Security for retirement income. I think we've all suspected that for quite some time.
I'm actually kind of surprised a higher percentage isn't counting on it for an even greater percentage of retirement income. I would have thought something like 75% would have counted on it for at least 75% of their income.
Still, it's worrying given that we may face a cut in benefits in the next 20 years or so. Hopefully people will wake up by then, begin to save more for retirement, and go back to counting on Social Security for 40% or less of retirement income.