Wednesday, March 26, 2014

Retirement Readiness--Not So Much?

The Employee Benefits Research Institute (EBRI), has released the 2014 Retirement Confidence  Survey (Issue Brief 397, March, 2014). The 2014 Retirement Confidence Survey: Confidence Rebounds—for Those With Retirement Plans runs 34 pages and includes nifty charts and great information for our students. Just to give you a sense of what is included in the report, here are some excerpts from the "at a glance" summary on page 1:

  • The percentage of workers confident about having enough money for a comfortable retirement, at record lows between 2009 and 2013, increased in 2014...
  • This increased confidence is observed almost exclusively among those with higher household income, but it was also found that confidence was strongly correlated with household participation in a retirement plan...
  • Retiree confidence in having a financially secure retirement...has also increased, with 28 percent very confident ...  and 17 percent not at all confident...
  • Fifty-eight percent of workers and 44 percent of retirees report having a problem with their level of debt...
  • Worker confidence in the affordability of various aspects of retirement has also rebounded...
  • Sixty-four percent of workers report they or their spouse have saved for retirement... Here again, participation in a retirement plan mattered: 90 percent of workers participating in a retirement plan had saved for retirement, compared with just 1 in 5 of those without a retirement plan. 
  • A sizable percentage of workers report they have virtually no savings and investments...[with] 36 percent say they have less than $1,000 (up from 28 percent in 2013), although those who indicate they and their spouse do not have a retirement plan ... are far more likely than those who have a plan to be in this group... Moreover, 68 percent with household income of less than $35,000 a year have savings of less than $1,000. Of those who have saved for retirement, only 38 percent report savings of less than $25,000. (emphasis added).
  • Cost of living and day-to-day expenses head the list of reasons why workers do not save (or save more) for retirement...

In addition to the report, there are a number of fact sheets devoted to specific topics such as confidence, preferences on savings and taxes, retirement expectations, comparisons by age and by gender, retirement preparation and perceptions about Medicare and Social Security.

http://lawprofessors.typepad.com/elder_law/2014/03/retirement-readiness-not-so-much.html

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