The Work sur ers vey ar w e als as un o m do erw re li rit ke ten by ly to cAA ite R dP eb , A t m as a eri c can on Ce cern ntu co ry m In pared vestm with re ents, Bu tiree ck s. Si Conx sul tytants, -one pC erc olu ent mbo ia f FOR IMMEDIATE RELEASE wo Thread rkern s s ee ay dle, debt is J.P. M a pro organ blem , Lin fco or ln the Fin m an , ccial om,p M ared erce wi r, th 2 Met 6L perc ife, Na ent tio on f re wide Fin tirees. an “H cial isto , P rical IMCO, ly, t P he rin RCS h cipal as Fi fon uan ndcial a c Gro orrela uptio , Tn . Rowe betw P ee rice, T n debt le he Seg vels al Gr ando re up tir , and eme Van nt co gu nard fidenc . e,” said Copeland. “In 2019, 41 Betsy Jaffe percent of workers with a major debt problem say that they are very or somewhat confident about Director, Marketing and Public Relations About EBRI: having enough money to live comfortably in retirement, compared with 85 percent of workers who Employee Benefit Research Institute indicate debt is not a problem. Thirty-two percent of workers with a major debt problem are not at all The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in press-media@ebri.org confident about their prospects for a financially secure retirement, compared with 5 percent of workers Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI 202.775.6347 without a debt problem.” conducts objective research and education to inform plan design and public policy, does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and Asked to identify their guiding principle for managing finances in retirement — income stability vs. Confidence in Retirement Security Rebounds to Pre-Financial Crisis Levels sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For preserving principal and wealth — a majority of both retirees (65 percent) and workers (74 percent) more information go to www Re .eb tire ri.o erg C o orn w fiww den .as cec. e N org ea rs All-Time Highs select “Income Stability: Ensuring a set amount of income for life.” While more than 4 out of 5 retirees and workers indicate that Social Security is or will be a source of retirement income, differences emerge Abo WASH ut IG Nr G eT eON nwa –l d Apri & As l 2s3 o ,c 2 ia 0tes 19 : – The 2019 Retirement Confidence Survey (RCS) finds 82 percent of in the income sources (and the stability of those sources) retirees report and the expectations of retirees are confident in their ability to live comfortably throughout retirement, up from 75 percent last Greenwald & Associates is a leading, full-service market research firm specializing in retirement, workers. Eight in ten workers (82 percent), for example, expect income from a workplace retirement year and comparable to highs measured in 2005 and 2017. Furthermore, the percentage of workers employee benefits, and health care research. For more information, go to www.greenwaldresearch.com savings plan (separate from a pension plan), while just half of retirees (54 percent) report this is a source who say they are very confident in their ability to live comfortably throughout retirement reached 23 of income. Also notable, half of workers suggest they expect a product that guarantees income for life, percent, up from last year’s 17 percent and now reflecting levels measured more consistently in the late such as an annuity, will be a source of retirement income for them, whereas only a third of retirees (33 1990s and early 2000s, prior to the financial crisis of 2008. percent) receive income from this type of product. th Now in its 29 year, the annual RCS is the longest-running survey of its kind, measuring worker and “The most pronounced gap in retiree experience and worker expectation for retirement income sources retiree confidence about retirement. It is conducted by the Employee Benefit Research Institute (EBRI) remains working for pay in retirement,” said Lisa Greenwald, executive vice president of Greenwald & and independent research firm Greenwald & Associates. Associates. “Three-quarters of workers believe work for pay will be a source of income in retirement This year, retirees are also much more likely than last year to be confident in their ability to afford the and only a quarter of retirees actually receive income from work. It is risky for workers to assume they lifestyle they are accustomed to (77 percent vs. 70 percent) and having enough money to last their will be able to work into retirement when, for so many retirees, this has not been the case. I understand entire life (76 percent vs. 67 percent). Eight in ten retirees indicate they are very or somewhat confident there’s a strong desire for income stability, but for many, continuing to receive a regular paycheck from they will have enough money to take care of medical expenses, compared with 70 percent in 2018, and work may not be the solution.” retirees are less likely than last year to say their overall expenses, health care expenses, and long-term The RCS continues to identify a lack of alignment between workers’ expectations about their age of care expenses are higher than they expected. retirement and prospects for working in retirement, compared with retiree experiences. Workers The RCS finds that two-thirds of American workers (67 percent) feel confident in their ability to retire continue to report an expected median retirement age of 65, while retirees report they retired at a comfortably, with 23 percent feeling very confident. This reflects a 6 percentage point increase in the median age of 62. The survey has consistently found that 43 percent of retirees leave the workforce workers who feel very confident over 2018. Though comparable to highs last seen 1997 through 2006 earlier than planned, with 35 percent citing illness or disability as the reason and 35 percent retiring due and in 2015 and 2016, worker confidence in 2019 still falls short of the 27 percent high measured in to changes at their company. In keeping with their income expectations, 80 percent of workers expect 2007, pre-financial crisis. to work for pay in retirement, while only 28 percent of retirees report that they have actually done this. “Retirement confidence continues to be closely related to having a retirement plan,” said Craig The survey report, The 2019 Retirement Confidence Survey, is available at ebri.org. Copeland, EBRI senior research associate and co-author of the report. “Workers reporting they or their About the Survey: spouse have money in a defined contribution plan or IRA, or have benefits in a defined benefit plan, are nearly twice as likely to be at least somewhat confident about retirement (74 percent with a plan vs. 39 The 2019 survey of 2,000 Americans was conducted online January 8 through January 23, 2019. All percent without a plan).” respondents were ages 25 or older. The survey included 1,000 workers and 1,000 retirees. The survey also included an oversample of 307 Gen X workers. Data were weighted by age, gender, and education. While 72 percent of workers are very or somewhat confident about being able to afford basic expenses The margin of error is ± 3.16 percentage points for both workers and retirees in a similarly sized random in retirement, 41 percent are not confident about their ability to cover medical expenses and nearly half sample. (48 percent) do not feel confident about having enough money for long-term care in retirement.