Retirement angst reaches 18-year high
Less than 20% of American workers feel confident that they will be able to afford a comfortable retirement .
American workers are increasingly worried about health care costs and economic issues as their confidence about being able to afford a comfortable retirement dropped to 18% in 2008, from 27% in 2007.
This is the largest drop in the 18-year history of the Retirement Confidence Survey, according to results released today.
The study, directed by the Washington-based Employee Benefit Research Institute, was published in the April 2008 EBRI Issue Brief.
Retiree confidence also decreased, from 41% to 29%, a drop of 12 percentage points.
Decreases in confidence occurred across all age groups and income levels but were particularly acute among younger workers and those with lower incomes.
Health costs are a huge concern for retirees: Among retirees who left the work force earlier than planned, more than 54% said they did so because of health problems or disabilities.
“In the nearly two decades we have been conducting the RCS, this year’s results show a very dramatic reduction in the public’s confidence about having a comfortable retirement. The economy and health costs are major concerns,” said Dallas Salisbury, president and chief executive of the EBRI, in a statement.
“If there is a silver lining, it’s that Americans finally may be waking up to the realities of being able to afford retirement.”
The survey found that 47% of workers said they’ve tried to calculate how much money they will need for a comfortable retirement, up considerably from the low of 29% measured in 1996.
The 2008 Retirement Confidence Survey, conducted in January, was based on 20-minute random telephone interviews with 1,322 individuals, who included 1,057 workers and 265 retirees.
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