For many Americans, retirement means leaving the workforce and relying on a combination of savings, pensions, investments, and Social Security benefits. But not every household has access to these income sources. Millions of older Americans reach retirement age with limited financial assets, making Social Security a central part of their monthly budgets.
Recent data show that a significant share of older households have no retirement account, while many retirees receive nearly all their income from federal benefits. The situation is particularly relevant for single women and households without pension coverage, where the ability to build additional retirement income may be more limited.
Knowing how many retirees depend on Social Security requires looking at both household savings and the income people receive after retirement. These measures provide different perspectives on retirement security and help explain why some older Americans have fewer financial resources than others.
Savings
More than half of households headed by someone aged 65 or older do not have an IRA, 401(k), or similar retirement account, according to an Investopedia analysis of the Federal Reserve’s 2025 Survey of Consumer Finances.
The analysis estimates that approximately 53% of these households, or around 21 million, do not hold a retirement account. However, not having a retirement account does not necessarily mean a household has no financial resources. Some retirees may have pensions, home equity, or savings held outside retirement accounts.
A smaller group faces more limited options. Approximately 12 million older households have neither retirement accounts nor traditional pension benefits. Their typical financial assets were around $2,500 in 2025, compared with approximately $88,000 across all older households.
The Federal Reserve’s Survey of Consumer Finances provides detailed information about household assets, debts, and financial circumstances. Its findings help distinguish between households that lack retirement accounts and those that have few financial resources overall.
Among older households without retirement accounts or pensions, approximately 8 million have less than $10,000 in checking accounts, savings, investments, and other financial assets. More than 3 million of these households do not own a home.
For these households, Social Security benefits may be the primary source of income available to cover regular expenses.
Income
The number of retirees without retirement accounts does not fully explain how older Americans support themselves. Income data provide another important measure of financial security.
According to Investopedia’s tabulation of the Census Bureau’s 2026 Current Population Survey, approximately two in five retirees receive 90% or more of their income from Social Security and Supplemental Security Income (SSI).
This distinction matters because Social Security and SSI serve different purposes. Social Security retirement benefits are generally based on a person’s earnings history, while SSI provides assistance to eligible older adults and people with disabilities who have limited income and resources.
The U.S. Census Bureau’s Current Population Survey collects information about household income, employment, and demographic characteristics. These figures help explain how retirees meet their daily expenses rather than simply measuring the assets they own.
For someone receiving nearly all their income from Social Security, monthly benefits may need to cover housing, food, healthcare, transportation, and utilities. The amount available for discretionary spending can therefore be limited, particularly for retirees who rent their homes or have significant medical expenses.
Sources
Social Security represents the largest single source of retirement income in the figures provided for 2025.
| Income Source | Share of Retiree Income |
|---|---|
| Social Security | 43% |
| Pensions | 17% |
| Retirement account withdrawals | 10% |
| Interest, dividends, and rental income | 18% |
| Other sources | 12% |
The figures show that Social Security accounts for approximately 43% of retiree income. Pensions provide another 17%, while withdrawals from retirement accounts contribute 10%. Interest, dividends, and rental income together account for 18%.
These sources are not equally available to every retiree. Workers who spent their careers in jobs without employer-sponsored retirement plans may have fewer opportunities to accumulate pension benefits or retirement account balances.
The Social Security Administration’s retirement benefits information explains how benefits are calculated and how claiming age affects monthly payments. For people approaching retirement, understanding their expected benefit is an important step in estimating how much additional income they may need.
However, Social Security benefits alone do not indicate whether a household can meet its expenses. A retiree with a paid-off home may face a different financial situation from someone receiving the same benefit while paying rent.
Gender
Retirement savings patterns also differ between single women and married or partnered households.
According to the figures provided, approximately 70% of single women do not have an IRA, 401(k), or similar retirement account. The share is lower among married or partnered older households, with more than two-fifths lacking such accounts.
Several factors can contribute to these differences. Women may experience interruptions in employment because of caregiving responsibilities, which can affect earnings and retirement contributions. Differences in lifetime wages can also influence how much workers accumulate over time.
Life expectancy is another consideration. Women generally live longer than men, meaning retirement resources may need to cover a longer period. Widowhood can also change a household’s financial circumstances, particularly when the surviving spouse loses part of the household’s income.
Single households may face additional financial pressures because expenses such as rent, utilities, and insurance are not shared with a partner. These circumstances can make it more difficult to build savings or manage unexpected costs.
Challenges
Retirees who depend heavily on Social Security may have limited flexibility when their expenses increase.
Housing costs are often a major consideration. Renters may face rising monthly payments, while homeowners still need to account for property taxes, insurance, repairs, and maintenance.
Healthcare costs can also affect retirement budgets. Medicare provides coverage for eligible older adults, but premiums, deductibles, prescription medications, and certain services can result in additional expenses.
Inflation adds another factor. Social Security benefits receive cost-of-living adjustments, but these increases may not match the changes in every retiree’s personal spending. For example, someone whose budget is heavily weighted toward housing or healthcare may experience a different impact from rising prices than someone with lower expenses in those categories.
Without savings, retirees may also have fewer options for handling unexpected bills. A major repair or medical expense can require difficult decisions about how to allocate available income.
Planning
Retirement planning can help households understand their likely income and expenses before leaving the workforce. The approach will differ depending on age, earnings, existing savings, and access to employer benefits.
For workers who have access to an employer-sponsored retirement plan, regular contributions and employer matching may help build additional resources. Individual retirement accounts can also provide another option for eligible savers.
People approaching retirement may benefit from reviewing their estimated Social Security benefits, identifying essential expenses, and considering how long their savings may need to last.
For retirees already living on limited income, assistance programs may also be relevant. Eligible older adults may qualify for Supplemental Security Income, Medicare Savings Programs, or food assistance through the Supplemental Nutrition Assistance Program.
These programs have eligibility requirements, and benefits vary according to individual circumstances. Still, understanding available assistance can help some households manage expenses more effectively.
The retirement savings figures highlight a difference between having no retirement account and having no financial resources at all. Some older households may rely on pensions, home equity, or other assets, while others have few alternatives beyond Social Security.
With approximately two in five retirees receiving at least 90% of their income from Social Security and SSI, federal benefits remain an important part of retirement income in the United States. The extent to which households depend on them, however, varies according to their savings, housing situation, and other sources of income.
