Millennial retirement plan participants are especially optimistic about the financial situations present and future; women not so much.
A significant majority of retirement plan participants have confidence in their financial situation and optimism about their financial futures, according to a Spectrem Group study.
Roughly two-thirds (65 percent) report that their financial situation is better than it was a year ago, while just over seven-in-ten (72 percent) expect their personal financial situation will be stronger a year from now. A majority (52 percent) “fully expect” to have sufficient income to live comfortably during retirement.
(To read the complete report Financial Attitudes and Concerns of DC Participants, click here.)
Whether or not Americans have a retirement savings plan is a key factor in their outlook about having an affordable retirement, according to the 2015 Retirement Confidence Survey recently released by the Employee Benefit Research Institute. Following record lows between 2009 and 2013, the percentage of workers confident about having enough money for a comfortable retirement increased last year and again in 2015. Twenty-two percent are now very confident (up from 13 percent in 2013 and 18 percent in 2014), while 36 percent are somewhat confident. Twenty-four percent are not at all confident (statistically unchanged from 28 percent in 2013 and 24 percent in 2014).
The increased confidence since 2013 is strongly related to retirement plan participation, the EBRI study states. Among those with a retirement plan, the percentage very confident increased from 14 percent in 2013 to 28 percent in 2015. In contrast, the percentage very confident remained statistically unchanged among those without a plan (10 percent in 2013, 9 percent in 2014, and 12 percent in 2015).
Millennial retirement plan participants surveyed by Spectrem Group are especially optimistic about the financial situations present and future. Seventy-three percent—a higher percentage than their older cohorts—indicate their financial situation today is better than it was a year ago. Millennial respondents participating in a retirement plan are especially optimistic that their personal financial situation will be better a year from now (84 percent, compared with 69 percent of Gen Xers and Baby Boomers and 52 percent of seniors 65 and up).
Less than half of surveyed retirement plan participants self-report that they are not saving enough to meet financial goals (41 percent), while 39 percent indicate concern about their amount of household debt.
But even with a retirement plan, women, due to pay inequality or time from their careers spent as family caregivers, have less confidence than men that they will have sufficient retirement savings 46 percent vs. 59 percent of men).
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.