The WSJ is reporting on an annual study conducted by the Employee Benefit Research Institute (EBRI) that claims that 60% of workers are very confident or somewhat confident in their ability to retire. This figure is down 4% from last year, and 10% since 2007, but up slightly from 2012.
The report also goes on to say that current retirees are more confident (79%) than workers in their ability to retire. That leaves 21% of current retirees who must be struggling in their retirement. It makes sense to us that current retirees are more confident than future retirees, especially when one considers that roughly 50% of the private sector once participated in a DB plan, while private sector participation is only about 14% today.
Furthermore, the study of 1,671 participants indicated that 47% of households reported having less than $25,000 in savings and investment, when not including one’s home. How is it that 60% feel confident in their ability to retire when 47% have less than $25,000, and nearly 50% of those had less than $1,000 saved?
We’ve frequently expressed our concerns about the impending retirement crisis in the U.S. The social and economic ramifications will be grave, and there is nothing in this recent study that diminishes our concerns!