OUR THOUGHTS ON:

Recent Survey Indicates Retirement Confidence Remains Unchanged

ERISA

By Todd Lucas

The Employee Benefit Research Institute (EBRI) released its 2012 Retirement Confidence Survey (RCS), which indicates that respondents’ confidence to be able to afford a comfortable retirement has remained unchanged. The survey also revealed that job security, debt and financial insecurity appear to be more pressing concerns for workers.

Fourteen percent of respondents are very confident in their ability to save enough money for a comfortable retirement, up from 13% in 2011. Additionally, 23% are not confident at all (down from 27%) that they will be able to save enough for retirement.

For as big of a concern that saving for retirement appears to be, 42% indicated job security as their top financial concern.

Other alarming, but maybe not surprising given the economy of late, responses were:

• Sixty-six percent report that they and/or their spouse have saved for retirement, down from 75%.
• Only 58% are currently saving for retirement, down from nearly two-thirds in 2009.
• Sixty percent report that their household’s retirement savings, not including the value of their house or pension plans, is under $25,000.

Finally, the percentage of those who believe they will work past age 65 continues to increase. In 1991, only 11% expected to work past age 65. This percentage rose to 17% in 1997; 18% in 2002; and 24% in 2007. In 2012, that number sits at 37%.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments