Relying on Social Security

The Associated Press and the LifeGoesStrong lifestyle website reported last week that nearly two thirds of Baby Boomers surveyed said Social Security will be either an "extremely" or "very" important source of income when they retire.

Most of those surveyed reported that their retirement accounts lost significant value during the economic crisis. Many indicated they plan to work longer than they anticipated. Few have saved nearly enough for retirement.

Social Security was never intended to be the primary, much less sole, source of income for retirees. It was conceived to complement the pension income employees receive through their employers and workers' savings.

Unfortunately, few employers offer formal defined benefit pension plans. Most companies have instead opted for a deferred compensation plan, such as a 401(k).

This would not be so bad if employees actually picked up the slack and saved more. However, they have generally not saved enough either through their plans at work or on their own.

The result is a generation that is headed toward retirement with very little in savings. While Social Security will surely remain a source of income for retirees, it will not provide nearly enough income to maintain the lifestyle that most Americans consider reasonable.