April 08, 2011
A recent survey by the Employee Benefit Research Institute (EBRI) found that Americans are increasingly pessimistic about having enough money to retire, but “instead of making fundamental adjustments to their spending and saving patterns in response to the decline in confidence, workers continue to change their expectations about how they will transition from work to retirement.” According to EBRI’s Retirement Confidence Survey, twenty-seven percent of workers are “not at all confident” they will have enough money for a comfortable retirement—the highest level in the survey’s history. As a result, most workers are postponing retirement and 36 percent expect to retire after age 65, an increase from 25 percent in 2006. Even when they do retire, most respondents (76 percent) expect to continue working for pay in some capacity. Despite their financial fears, however, only 42 percent report trying to calculate how much they need to save. Moreover, 70 percent of workers say that they are behind schedule in planning and saving for retirement. According to the survey, workers are also not confident that they will receive the benefits of federal entitlement programs in retirement, with 39 percent of workers uncertain about the future of Social Security and 44 percent "not too confident" or "not at all confident" about Medicare.