Employees say workplace retirement plan will be a major retirement income source

Workers are less confident about the role Social Security will play in their retirement, EBRI survey shows.
APR 24, 2018

An increasing percentage of workers say their workplace retirement savings plan will be a major source of retirement income, according to an annual survey by the Employee Benefit Research Institute issued Tuesday. In 2018, 53% of workers said these plans will be the major source of retirement, up from 47% in 2017, according to a report about the survey results. Between 2009 and 2017, the percentage hovered between 42% and 47%. By contrast, workers are much less confident about the role Social Security will play in their retirement than are current retirees, the report said. Only 36% of workers said they expected Social Security to be a major source of income, while 67% of retirees said Social Security is the major source of income. (More: Guaranteed income tops boomers' retirement wish list) The survey also found that workers participating in a defined contribution plan were more confident about retirement than workers lacking a retirement plan. Seventy-six percent said they were at least somewhat confident in their ability to live comfortably in retirement versus 46% of those without a DC plan. "Satisfaction with DC plans is very important because that will encourage their use in building up assets in retirement," Craig Copeland, EBRI senior research associate and co-author of the report,said in a news release. "However, the data suggest that many plan participants don't know what to do with their plan assets in retirement," he added. For example, 31% said they don't know whether they would put the money into a rollover IRA, keep the money in the plan or cash out. The annual survey was conducted by EBRI and Greenwald & Associates, a market research firm. The online survey was conducted in early January with 1,002 workers and 1,040 retirees. (More: Plan advisers, consultants question value of managed accounts) Robert Steyer is a reporter for InvestmentNews' sister publication Pensions&Investments.

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