A recently released report showed that nearly half of American workers surveyed lack confidence in their ability to live comfortably in retirement and most are hungry for sound retirement planning advice.
In a release, the company said that the 23rd annual
Declining Confidence Surrounding Retirement
The survey data shows that workers continue to lose confidence in their ability to pay for basic expenses into retirement – 29 percent lack confidence today compared to 18 percent in 2007 – and medical expenses – 52 percent today compared to 32 percent in 2007.
"The EBRI survey chronicles a growing level of pessimism among Americans about their financial well-being in retirement," said
In fact, 52 percent of workers in the survey say it would be "very valuable" to receive recommendations about how to make savings last throughout retirement, and 36 percent think it would be "somewhat valuable." Significantly, 45 percent of workers in the survey report they simply guessed in order to arrive at the level of savings necessary to live comfortably in retirement.
The continued decline in workers' confidence about retirement might be due to the realization of what is necessary to prepare for retirement. According to the EBRI survey, 41 percent state that the cost of living prevents them from saving more. One of the survey's key findings shows that roughly 60 percent of workers and 40 percent of retirees reported debt problems and were the least likely of all respondents to have confidence in their overall retirement outlook.
Financially Secure Retirement Requires Education, Self-Awareness
According to the survey, employees who have done a retirement-savings-needs calculation tend to have higher savings goals, and are more confident, than workers who have not. "Education and financial literacy are the keys to ensuring that people are planning properly for retirement," said
As part of Guardian's on-going efforts to educate future retirees and bring clarity and focus to the psychological aspects of retirement planning, Guardian said it launched a new website last fall called Retirement Style Matters This interactive tool teaches people that who they are can have a major impact on how they invest.
"There is more to retirement planning than just charts and graphs," said Dubitsky. "We know personality also plays a large role in the way people prepare for retirement."
Bright Spot: Majority Participate in Employer-Sponsored Retirement Plans
According to the survey, 41 percent of survey respondents state that they are "not at all" confident about future
"Employer-sponsored retirement plans such as 401(k)s continue to gain favor with employees and their employers," said
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