This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

2013 Retirement Confidence Survey: Retirement Confidence Remains At Historic Lows As Americans Grasp Reality Of Savings Need

Despite signs of economic recovery, a new survey says Americans’ confidence in their ability to afford a comfortable retirement remains at historic lows as workers appear to be grasping the realities of what they need to save.

The 2013 annual Retirement Confidence Survey, released today by the nonpartisan Employee Benefit Research Institute (EBRI) in Washington, and co-sponsored by the Principal Financial Group ®, finds overall confidence levels are essentially unchanged since the record lows set in 2011. Only 13 percent are very confident they will have enough money for a comfortable retirement. A full 28 percent 1— the highest number recorded during the 23 years of the survey—are not at all confident.

Workers have growing doubts about their ability to pay for basic expenses in retirement and are least confident about being able to afford medical costs and long-term care.

The lack of confidence may also stem from a finding that workers seem to be realizing just how much they may need to save. Nearly 70 percent say they need to set aside 10 percent or more of total household income to fund a financially secure retirement. Four in 10 put the target at 20 percent or more.

Despite those projections, the survey finds less than half are taking steps to prepare and total savings remain modest. Saving and planning for retirement are overshadowed by immediate worries about job certainty, daily expenses and debt.

“Especially in the face of current financial challenges, Americans need a plan for saving and spending so they can manage short-term needs and better prepare for the long-term,” said Greg Burrows, senior vice president of The Principal ®, a long-time underwriter of the Retirement Confidence Survey. “Using an online calculator or working with a financial professional to assess savings needs helps with setting realistic goals and getting on track toward a more secure future.”

The survey shows overall retirement confidence is 20 – 40 percent higher among workers who take positive financial actions including calculating retirement savings needs, saving in an employer-sponsored plan and getting advice from a financial professional.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs