UBP blog

07/15/2009

In 2009, retirement confidence hits an all time low

The percentage of respondents in the 19th annual Employee Benefits Research Institute (EBRI) Retirement Confidence Survey who reported that they were very confident in having enough money to retire comfortably has fallen to a record low of 13%. The most common reasons that workers today give for having such low levels of retirement confidence are economic uncertainty, inflation and the cost of living. The survey results have shown us several key findings.

1. Employees are delaying retirement:

Out of all the Retirement Confidence Survey respondents, 28 percent stated that the age at which they plan to retire has changed. The vast majority of this 28 percent of respondents—89 percent of them—plan on pushing back their retirement date so they can have greater financial security.

In your company, are opportunities for advancement for younger employees on hold because employees that you had thought would retire soon are, in fact, delaying retirement?

In this year’s survey, the median expected retirement age came out to be 65 years of age, yet 21 percent of workers in the United States plan on working into their 70s.

How do you expect that having full-time employees in their 60s and 70s at your company will impact the cost of your medical, disability and life insurance benefits?

2. Employees still don’t know how much they need to save for retirement:

Only 44 percent of working Americans (and their spouses) have tried to calculate how much they would need to save for retirement. On the other end of the spectrum, 44 percent of workers surveys stated that they simply guess the amount of money they will need to save up in order to retire comfortably.

When it comes to having the financial confidence in your ability to cover all your needs in retirement, it should never be a guessing game.

What are you, the HR professional/employer doing to educate your employees about saving for retirement?

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