Confidence in having a secure retirement remains relatively low among both pre-retirees and those actually retired but in some cases that may reflect an unrealistically high expectation of assets that are needed, according to a new report.
The Employee Benefits Research Institute’s annual "retirement confidence survey" found that the percentage of workers believing they will have enough money for a comfortable retirement is essentially unchanged from the record lows hit in 2011—21 percent said they are not too confident and another 28 percent said they are not at all confident, among workers.
Among retirees, the percentages were 22 and 14 percent, respectively.
"One reason that retirement confidence has remained low despite a brightening economic outlook may be that some workers may be waking up to a realization of just how much they may need to save," it said. "Asked how much they believe they will need to save to achieve a financially secure retirement, a striking number of workers cite large savings targets: 20 percent say they need to save between 20 and 29 percent of their income and nearly one-quarter (23 percent) indicate they need to save 30 percent or more.
"Aggressive as those savings targets appear to be, they may not be based on a careful analysis of their individual circumstances. Only 46 percent report they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire so that they can live comfortably in retirement," it added.
Debt and concern about unexpected expenses contributed to the overall gloomy mood. Fifty-five percent of workers and 39 percent of retirees reported having a problem with their level of debt, and only 50 percent of workers and 52 percent of retirees said they could definitely come up with $2,000 if an unexpected need arose within the next month.
Other common concerns include the cost of living in general and the cost of medical care in particular.