More workers are pessimistic about their retirement future than at any time in the past two decades, according to the Employee Benefit Research Institute 2011 Retirement Confidence Survey.
The percentage of workers who are not at all confident about saving enough money for a comfortable retirement reached 27% in 2011, compared with 22% last year. When combined with those who said they are not too confident, the total reaches 50% of workers.
Among the findings:
• The number of workers who are saving money for retirement declined slightly from 60% last year to 59% in 2011.
• Quite a few workers virtually have no savings or investments. In 2011, 29% said they have less than $1,000. And 56% said that their savings and investments, excluding their home value, totals less than $25,000.
• The number of workers who have dipped into their savings to pay for basic expenses or to take a loan has reached 34%.
• And 22% of workers said their debt is a major problem.
Even though workers have not started making major changes, at least 62% of workers say it is possible for them to save $25 a week for retirement.
One expectation may need to be adjusted. Among the 1,004 workers surveyed by EBRI, 74% say they plan to work in retirement to supplement their savings, but just 23% of the 254 retirees surveyed say they have worked in retirement.
There is a disconnect between people's perception and the reality. Among the reasons retirees are not able to stay in the workforce are health problems and work skills that have eroded.
There are no guarantees. But if someone starts planning ahead of time, it's more likely that they can work longer and save more for retirement.
http://www.usatoday.com/money/perfi/retirement/2011-03-15-1Aretireconfidence15_ST_N.htm
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