Nearly half of workers without a retirement plan are not at all confident about their financial security in retirement compared with only about 1 in 10 retirement plan participants.
There is good news and discouraging news on the retirement readiness front, according to Employment Benefit Research Institute’s 2014 Retirement Confidence Survey.
The good news is that the percentage of workers confident about having enough more for a comfortable retirement is up from last year, 18 percent from 13 percent in 2013. More sobering, though, is that 37 percent report being only somewhat confident, while 24 percent are not at all confident, statistically unchanged from 2013, EBRI reports.
You know who is most likely to feel confident of a financially secure retirement? Not surprisingly, it is those with a higher household income. You know who else is confident about having enough money for a comfortable retirement (also not surprisingly)? It is those who participate in a retirement plan. Nearly half of workers without a retirement plan are not at all confident about their financial security in retirement compared with only about 1 in 10 retirement plan participants.
A Spectrem’s Millionaire Corner study of retirement plan participants finds similar optimism…and concerns. Half said that their financial situation is better than it was in the previous year. Nearly six-in-ten said they expect their personal financial situation will be stronger next year.
At the same time, these retirement plan participants also report misgivings about their retirement savings and household debt. Nearly half (48 percent) said that their household is not saving enough to meet their financial goals, while 41 percent said they are concerned about their current level of household debt. Forty-three percent do expect to have sufficient income to live comfortably during retirement.
Across age groups, the youngest retirement plan participants surveyed by Millionaire Corner are the most confident in a secure financial future and have the highest expectations they will be able to live comfortably in retirement. At the same time, they are also the most concerned about the amount of debt they are carrying.
Those between the ages of 35-49 are the most concerned about saving enough to achieve their financial goals.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.