Retirement confidence is highest among workers who say they or their spouse have a retirement plan, such as a work-sponsored plan or an individual retirement account (IRA), reports the Employee Benefit Research Institute (EBRI). In its 2015 Retirement Confidence Survey, EBRI found that 28% of those with a retirement plan said they were “very confident” about their ability to afford retirement, compared with just 12% of those without a plan.
In addition, 34% of workers who said they or their spouse have a retirement plan had saved at least $100,000 for retirement, while 64% of those without a plan say they had saved less than $1,000.
“Those without a retirement plan seem to understand they are likely to have difficulties accumulating adequate financial resources for retirement,” said EBRI research director Jack VanDerhei. “Forty-four percent of workers without a retirement plan are not at all confident about having enough money for a comfortable retirement, compared with only 14% of those who have a plan.”
Confidence on the rise
EBRI found that overall retirement confidence continues to rise from the lows of the 2009 to 2013 period, as 22% of workers were very confident in their prospects for retirement, compared with 13% in 2013. The percentage of workers saying they are not at all confident remained statistically unchanged at 24%.
Retirees also exhibited a brighter outlook, with 37% saying they were very confident in their ability to afford retirement, compared with just 18% in 2013.
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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018