Retirement Plan Is Key to Confidence

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.

 

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matter addressed herein.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018

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