A new study released by the Employee Benefit Research Institute (EBRI) shows that worker confidence in their retirement as at an all-time low. The recession left many unable to save money and many more too worried about keeping their current jobs to even think about the future. The EBRI surveyed 1,270 workers and retirees above the age of 25.
The report shows that workers were very confident about their retirement in 2007. Here are some highlights from the survey:
•Only 14 percent of workers are very confident of a comfortable retirement, up from the record low of 13 percent last year. Thirty-eight percent now are just somewhat confident. And nearly half are not too optimistic — or not at all optimistic.
•Two-thirds of workers report being under financial pressure, with debt being a problem for one in five. More than two-thirds of workers acknowledge being a little or a lot behind on financially preparing for retirement.
•Even so, many workers aren’t taking steps to secure their future. Three years ago, 75 percent of workers said they or a spouse saved for retirement. Now that figure is down to 66 percent. Overall, 60 percent of workers report having less than $25,000 in savings and investments, not counting their house or traditional pension.
•Asked how much they think they will need to save for retirement, the most frequent answer — cited by 34 percent — was less than $250,000. That’s likely not enough for many.
The survey also found that one in four workers now plans on working past the age of 65, compared to one in 10 in 1991.