By Elaine Belsito
Horsesmouth Assistant Editor
Many preretirees are not accurate in predicting where they will get their income when their working years are over. And not surprisingly, there is a lot of overestimation.
According to a recent Gallup poll, Americans are more optimistic about living a good retirement than they have been since 2004. Yet preretirees also hold some misperceptions about how retirement will be funded. For example, among retirees, 57% describe Social Security as a major income source, while only 33% of preretirees describe it that way. Conversely, 47% of preretirees say their 401(k) savings will be a major source of income, but among retirees less than a third say they rely on retirement accounts as a major source of money.