Social Security was the largest source of income for those currently age 65 and

older, accounting for nearly 40 percent of their income on average, in 2008,

according to a study released today by the nonpartisan Employee Benefit Research

Institute (EBRI).

However, the importance of Social Security varied widely, with the lowest

income group very heavily dependent on the federal retirement program compared

with those who have high incomes.

The study, is based on 2008 data from the U.S. Census Bureau's annual March

Current Population Survey.

Here are some of the main points:

Median income

Real median income (midpoint, 50 percent above and 50 percent below) of those

age 65 and older reached $18,001 in 2008, the highest in the Census Bureau time

series. This was an increase from $13,264 (in constant 2009 dollars) in 1974 and

$17,085 in 2004.

Sources of income

Overall, Social Security accounted on average for 39.8 percent of the income

of those 65 and older in 2008. Pension and annuities was 19.7 percent, income

from assets was 13.0 percent, and income from earnings was 25.6 percent.

Distribution of income

Nearly all individuals (89.2 percent) age 65 and older were receiving income

from Social Security, while 55.3 percent received income from assets, 35.4

received income from pensions and annuities, and 20.4 percent received income

from earnings.

The study also showed the wide differences in sources of income by income

level:

Lowest income quintile (less than $8,956 in 2008): Social

Security, 88.4 percent; assets, 4.0 percent; pensions and annuities, 3.4

percent; earnings, 2.0 percent; other, 2.3 percent.

Highest income quintile (more than $38,468 in 2008):

Earnings, 39.3 percent; pensions and annuities, 22.6 percent; Social

Security, 18.6 percent; assets, 17.7 percent; other, 1.8 percent.

In addition, the study showed differences in the composition of income by

gender. For example, Social Security accounted for 48.4 percent of elderly

women's income in 2008, compared with 33.7 percent of elderly men's income. And

pensions and annuities accounted for 21.8 percent of elderly men's income,

compared with 16.8 percent of elderly women's.

The study, in the June EBRI Notes, is available at href="http://www.ebri.org">www.ebri.org.  EBRI is a private, nonprofit

research institute based in Washington, DC, that focuses on health, savings,

retirement, and economic security issues. EBRI does not lobby and does not take

policy positions.