Employees are less confident about having a financially secure retirement, according to the Employee Benefit Research Institute’s (EBRI) annual survey.
The Retirement Confidence Survey of 2009 showed only 13% of workers are confident they will have enough money to retire. Not surprising, given the state of our economy and low interest rates on savings and investments.
Here are the statistics the survey revealed:
• 28% of workers say they expect to retire later.
• More workers–72%–plan to work for pay during retirement, up from 66%.
• 25% of workers are confident they will have enough money to take care of basic expenses, down from 40% in 2007.
• 13% of workers are confident about having enough to pay for medical expenses, down from 20% in 2007.
So how are workers responding?
• 81% say they reduced expenses,
• 43% are changing how they invest their money
• 38% are working more hours or a second job
• 25% are saving more money
• 25% are seeking advice from a financial professional
While many are taking steps to prepare for retirement, many still don’t have a good idea of how much they need to save. Only 44% said they (and/or spouse) have calculated how much they need to save by the time they retire. Another 44% say they have guessed at how much they will need.*
* The EBRI has done this survey since 1993.