Americans’ confidence in their ability to afford a comfortable retirement remains low—which may reflect a growing awareness of the savings realities ahead, according to the 23rd annual Retirement Confidence Survey (RCS), the longest-running survey of its kind.

• The percentage of workers confident about having enough money for a comfortable retirement is essentially unchanged from the record lows observed in 2011. While more than half express some level of confidence (13 percent are very confident and 38 percent are somewhat confident), 28 percent are not at all confident (up from 23 percent in 2012 but statistically equivalent to 27 percent in 2011), and 21 percent are not too confident.

• Retiree confidence in having a financially secure retirement is also unchanged, with18 percent very confident and 14 percent not at all confident.

• One reason that retirement confidence has remained low despite a brightening economic outlook may be that some workers may be waking up to a realization of just how much they may need to save. Asked how much they believe they will need to save to achieve a financially secure retirement, a striking number of workers cite large savings targets: 20 percent say they need to save between 20 and 29 percent of their income and nearly one-quarter (23 percent) indicate they need to save 30 percent or more.

• Aggressive as those savings targets appear to be, they may not be based on a careful analysis of their individual circumstances. Only 46 percent report they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire so that they can live comfortably in retirement.

• Retirement savings may be taking a back seat to more immediate financial concerns: Just 2 percent of workers and 4 percent of retirees identify saving or planning for retirement as the most pressing financial issue facing most Americans today. Both workers and retirees are most likely to identify job uncertainty (30 percent of workers and 27 percent of retirees) and making ends meet (12 percent each).

• Cost of living and day-to-day expenses head the list of reasons why workers do not contribute (or contribute more) to their employer’s plan, with 41 percent of eligible workers citing this factor.

• Debt may be another factor standing in the way; 55 percent of workers and 39 percent of retirees report having a problem with their level of debt, and only half (50 percent of workers and 52 percent of retirees) say they could definitely come up with $2,000 if an unexpected need arose within the next month.

• Worker confidence in the affordability of various aspects of retirement continues to decline. In particular, increases are seen in the percentage of workers not at all confident about their ability to pay for basic expenses (16 percent, up from 12 percent in 2011), medical expenses (29 percent, up from 24 percent in 2012), and long-term care expenses (39 percent, up from 34 percent in 2012).

• Just 23 percent of workers (and 28 percent of retirees) report they have obtained investment advice from a professional financial advisor who was paid through fees or commissions. Of these workers, 27 percent followed all of the advice, but more disregarded some of it and followed most (41 percent) or some (27 percent).

Figure 14, Retiree Confidence in Having Done a Good Job of Preparing for Retirement ......................................... 15 As might companies, su The Half accounts to co cent) or some The decli (68 under compare to save RCS Methodol pro conseque percent), ? ? n (51 $ ed signif $5 35, ppay for Making en A chan d percent) o ortio be 00 wit 000 e ,0 and h n x nces of icantly i ch as ver the cost of admi report of it 0 those saying they pect ge bas 0 -ot in t ds meet (1 $9 fed, (27 ic ogy downsi her per workers an ing the 99, who h n exp work e minim 2 perc un 99 0 ens h 0 9, w zi s plann 1 e have save ave not, a er con y who onal ng or ,n es have save and the 2 perc t). um r hile (16 e Retire have saved savings and investmen closure fd earl nisterin rou idence e ent perce tirement d fo n ng es a hov d t e y h d for a ly 1 nt, u r retirem retirement can (20 g h in havi ch). re more the pla ose w ered aroun age fo retirem in for r p perc 10 fr ng eno hom 12 e o hav e eac n ent), likely tirem nt . Ho r Social ent decli al d h believ u o e so inc p ts wever, 7 be heavy: Th e gh saved for to r 0 nt st ercen (6 percent having money report Sec 4 n reases a ate that ed e perce t only h th u in ri from to care for sp follo ty (7 ey nee ret for fo 20 nt r a com alf (5 11 s ose who ) 49 perc i if th rement . S educat wing all percent most of the but de to ey wo venty- 3 perce statistically e f save ortabl are ion l ent of the advic retir )ouses .rk with fi five m n to pa e $1 mi e e retir t) vels rise 24 perc earli o perc re like st deca of or other family members (23 per- llion plan parti e e nanci ent qr th ment e ui l or y to - ent. By de valent to (46 percent) (Fi ex an $1. he al a i pe (Figure h n pl 49 mi alth status im cipants ave substantia creases w d ct employm anned ar visors as they comparison, 13 llion 15 percent r). T e (8 port e mo ith gh ure epercent e n proves. having tl leve re in to t30). get he ls ) Table of Contents  Ruth Helman is research director for Mathew Greenwald & Associates, Inc. Nevin Adams is director of Education and The 2013 Retirement Confidence Survey: Perceived Savings Figur Figuree  39 1 Figur Figur Figu Figu Figu Figu Figu Fig Figuurrrrrree ee e e e ree         41  12 10 32 22 42 24  87 rd Figure 25 Figure 5 Figure 21 or $1. The cent). perce close to ret likely tha In additio household inc of savings. noticed this perce provide reasons n n Others 5 mi tage tage them 201 nn tho llion In , m ire of of in 2), most often o ment it ome. Work say changes i with formation, a arried workers s fact, 68 or more workers w retirees me e who a source dica wi retir perc and/o l ex (10 ll er ith be fe n fpe ent of those percent e n confidence d only very im as planned or household of incom red for are mor r their the nses (29 skills re 1 spouse not )4 po e i (Fi e perc perc als l inc rtan n g iwho have not sa fo kel r ur quired for o llowin omes bet ent of e later to s having save ent, t for t e 2 increases y tirement, than t 7up ). g those h a Savin say e a fr the ll o h w om 24 ose n an d ee wi fvis w th t ig r n d 5 th h d for s ved ey are h $3 jo o e a goals o o notic rs to specia p bs (9 savings t 75, married to d e for ret perc retir rcen vice 0 not co 00 percen do t eent incl e d thi tand in and investments, me irement say their ee nd to incr li u n 20 nt clim x s ze i $74, de: ft) or information pect have set mo ide 12 n n ), a 99 conv other to r t a bed slo 9 re n b ed long-term ase as e out ertin cei wo por n v h w assets total less than $1,000. (7 educatio te income e aving rk-relate g ly from ing t househol y aside. perc assets into hey enou ent car 5 n, an d Other grou fro have of 9 r e d gh e e percent m as r inc all plan x d im saved pe e money for an ons (2 tirement ome rises. nses (3 proved he employe in partic ps of wo 0 for r 20 perc inco 9 percent, a 00 e ir- ti p to e alth ants) rement nt) m rkers e, External Relations at the Employee Benefit Research Institute (EBRI). Craig Copeland is senior research associate at Figure These fin 15, d Wo ingsrkers Having are part of th Se 23 aved Mo Annua ney l for Retir Retireme ement nt Co ........................................................................... nfidence Survey (RCS), which gauges the views and atti .......... tudes 15 Introductio ? ? The Needin n .................................................................................................................. bug to dget pa dey for ficit a health nd gover care costs (7 nment spen per ding cent). (8 p ercent of workers and 14 percent o ............................ 5 f retirees). Worker Confi Workdeence r Confi  Thdaence t Soc  in ial  Ha  Seving curi tEn y Will ough  Co  Mone ntinue y  to to Provide  Value of Wo Re  Rte rikrcom eeWo Re Wo er  Confi Confi tm rirWo rkAm kenda eeeerrd rd    Confi Co er kConfi ence ence etiic rnons  an fConfi id d   dTha Th sence e  ence  Re Re nacdttgep  ence  Med aMedi   o  in in rd in r  t Ha Ha in iHa n  iin ca gcgvin va  vin   Ho iTh Do rrneegg  g  ew Will in  Will   En En yEn  g  Mu D  o ou o a   iCon uCon pped  uGood ch gh gghh    tto t  Mone Mo iMon inue  nue in   W Jo to ne ib   thdr eto to  yy  y    to  to Pro to Provid awv id Freeo  m Plan  Needs Outpace Reality for Many Reaction to Automatic Enrollment at 3%  Participation in Plan With Previous Employer and Disposition of Plan Money Retirement Confidence Among Workers, by Assessed Level of Debt Confidence That Retirement Savings Are Invested Wisely , Among Savers more like comfortabl status. Others more o 74 played a decli say they hav and a sponsored, tra perc ned nother ent by role. up from 34 pe ly to e re ju in 3 e 201 st 4 1 have save Some reti d tirement made c percent itional 1 a perce nd pensio fhten rcent or a an now in ntag rees d fo ges c dio b cate it stands at r retirem e infident do mention n or cash out payi to the n 201 points (from wil 2). ir i are e ng l 7 ba nt n be for vestments as a 1 men in po la somewhat im perce 80 clude bas nce sitive reasons (compar piplan. nt c e th rcent ex (Fi ose age 45 a pe In ge in ur ns re d po ce 1 es, medic o with 200 sult of t for rtant (Fi nt 6rast to wor ). 9 to rwomen e tn iri d older 76 hn g al e ure g p info e ex )e , marri apenses, a k 31). rcent i rl (com rmation a er expectat y, su Workers ed wor n c pared h201 a nb d lo sout 3), whi io b k wi ers (compared with t e ages ns, current ng-t in fe th workers ges. ab erm car 25-44 ar le t le t he o ret af per ages 25 e e more likely expenses. fic o rees ar entag rd an e - he e l ose n 44 of ae rl ), t wo ss l ie to r h ht iose rkers an kely EBRI. Jack of working-age an VanDerh d r ee i tired is the research Americans re director at EBR garding retirem I. This ent, th Issue Brief eir preparations fo was written with assistan r retirement, their ce from confi the dence Ins wi titute’s th About the 2013 RCS ............................................................................................................ Benefits Liv of eat  Com  Leasftort  Equa ablyl  Va Thr luoeu  to ghout  Bene  Th fits ei rRe  Ret ceiiv reemde  by nt  R Yeeatirrsees Today...................... 6 Bene Beneffits its Ea   of cof h   at Mon at  Leas Leas Pay Pay thPa t  t Sa to    fo Efo yEqua  qua  vin fo of rHe r  Me Medi r  Prepar g  lp lBasic l s  Va Va  di  Sa toca lclu  u vin aPay  elelExp in    E  Exp to gto xg  sfo pens   e   fo Bene Be Las enrn r  sBa  ne esRet tes es, fs  fsAm iin ii  ts cts iin in re    Ret E   Re  on Re Ret Re m xpens cegictre ent i  eiPlan re riv iv emm ees m eeddeent    Pby nt nby atr   R tRiceeipa titirrees ees nts  To Toddaayy and 6% Deferral, Among Workers Not Offered Plan ? ? ? Nee Paying for Not trusting t ding to hea mh ake u le advice th insura p for(33 los nces percent or medi es in th of cal e stoc work expenses k market ers and 48 (9(5 per percent per cent of cent of reti ) work . er rees). s and 10 percent of retirees). Figure 16, Retirees Having Saved Money for Retirement ..................................................................................... 16 By Ruth Helman, Mathew Greenwald & Associates; and Nevin Adams, J.D., Craig Copeland, Ph.D., and Jack VanDerhei, Figure 19 currently retireme married), thos with those age to rely o househol n nt parti any 55 (32 and o d in c e who perc form of ipatin comes of lent der g i partici personal savin )n to t or a work plac w p hink an at least ate in anting to a a $7 e ret d def gvisor specia 5,0 s or do s ined contri 00 r ire o on em ment savin mething else eporti ployme lizi butio nn g t g i g h n n s ey hav nt for ( conver retirement pla pla 19 perc n their (compar e saved for ting a ent inc ), but ssets to incom ome in end (com retir with just 7 perc retir thos p eared ment remai ee ment e is im with t not parti ent (Fi of h portant n fer g ose ed st ur c ipati e only positive wh 38). atistically stea o do ng), (87 perce thos not), e rn an e hav t vs. asons. dy at d those ing research and editorial staffs. Any views expressed in this report are those of the authors and should not be ascribed to regard to various aspects of retirement, and related issues. The survey was conducted in January 2013 through 20- Retireme ? Cost of livi nt Confidence ng and ............................................................................................................................... day-to-day expenses head the list of reasons why workers do not contribute (or contribut 6 e 4 Ph.D., EBRI March 2013 • No. 384 Total Savings and InvFi esgu tm ree nt 27 Reported by Workers, Working for Pa ? ? The economy Not being a y in ble(8 perc to afford it Retirement ent of (21 percent workers an of workers and 12 d 6 percent of retirees). percent of reti rees). Figure 17, Workers Having Saved Money for Retirement, by Household Income ................................................... 16 attempted a who r 94 perc 76 perc eport ent). ent (Fi th r e ey or th gtirement ure 17eir s ). savings needs pouses current Workers ca  w/ly have lm culation ajor debt be  (com pr nef oblem its from a pared with t defi Wor hne oskd e who ers bene  w/m have n ifit norpla  deb nto  proble (compar t), an md te hd wit ose who h those currwho ently do have a Ve Verryy So Somew mewhhat at No Nott  Too Too No Nott  At At  All All Do Donn''tt  KKn noow w//RRef efuussed ed the of minute t Retirement Co ficers, eleph trone i ustees, or oth nfidence Slips nterviews with er sponsors of Back 1,25 .............................................................................................. 4 individuals EBRI, Em (1,0 ploy 0ee B 3 work ene ers an fit Res d 25 earch I 1 ren tire stitute es) age -Educatio 25 ann a d ol nder d R ............. 6 e in t search he Un Fu ited nd more) to their employVer er’s y plan, wit Somew h h41 at percent o NoFigu t Too f erligi e 14 ble work Not At Allers citinDo g th n't Kn ese f ow/Refactor used s. Nevertheless, if those Figure 28 Very Somewhat Not Too Not At All Don't Know/Refused Amount of SaAm vingosn  gWo  Thro kesers  Pro  Thin vid k iTh ngey  a  Re Nee spdo nfosre Retirement While responses to a question asking the Very Soage mewhatat whichNo work t Too ers expec Not Att to retir  All e sho Don't Kw nos little cha w/Refused nge from one year to 5 100% 100% The RCS ? ? has c Having t Taxes o(8 perc nsistently fou h100% eir oent of work wn ideas nd t or ot Wor hers and 5 percent at kers worke her  w/plans or nors are  debt probl goals (1 far mor of r em etirees). e8 like perc ly to ent of workers expect to work fo and 28 percent of r r pay in retireme etirees). nt than retirees Ve Verryy So Somewh mewhat at No Nott  Too Too No Nott  At At  Al Alll Do Don n''tt  Kn Kno ow w//R Ref efu ussed ed defi not). ne d benefit plan (compared Verwith y thosSo eme who what do not). Wor Not  k Too ers Ret Noiree t At sAll Don't Know/Refused Figure (EBRI-ERF), o 18, Wor their rkers Currently Saving Money for Retirem 100% staffs. Neither EBRI nor EBRI Retiree Conf -ERF id lobbi eence nt ...................................................................... es  in or tak  Having es p  Do ositions on sp ne a  ecific policy proposals. E .......... BRI 17 States. Random-di95 g%it dialing was Time used to fram obtain e When a re  Re pre tirees sentative cros  Began to Plan s section of  Financia th llye U.S.  for  population. To further Reality C not curre heck? ntly c 100% ................................................................................................................ 95% ontributi 3%ng w    ere automatically enrolled into a retirement savings plan, most would co ...................... 8 ntinue the 95% (not including val9% ue    of primary Fig ureresi de 38nce or defined benefit plans) 52% 7%   95% 15%   11%   13%   16% another, the long-term trend shows that the age at which workers pl 9% a   n to retire has, over time, crept upward. In 90 90% % 13%   14%   95 90% % 10%   9% 8%      14%   21% 90% Don't know/  Figure 35 15% 0. 0.09 09 are to have actually done so. The percentage of workers planning to work for 10%   pay in retirement now stan 0.09 ds at 69 per- Good Job of Preparing for Retirement 54% 35% 85 90 85% 95% 95% % % Retirement, Among Retirees Who Planned for Retirement 0.09 invites comme increase ? ? Making mort Circumstances repres nt on t entation, a 85% 95% his rese gage chan c payments (8 egin arch. ll-phon g so t e su he a percent of ppleme dvice was nt was a workers an no lo 17%   dde nge d to r d ap the 4 perc plicabl saent o mple. e (13 per 11% f r    Startin etirees). cent of work g with theer 2s and 3 001 wave perc ofent of the RCS, all contributio85 n% in some amou 10% Expecnt. Just 1 ted (Work 8e perc rs Exp ent i ectnFig in dicat gu  to ree   Re 31 thtiey wou re) andl d canc Actualel th  (Rete contr irees)  ibution if 29% enrolled at a More Pressing Concerns? 21%   ....................................................................................................... 11%   ................ 8 0.09 Figure 19, Total Savings and Investments Reported by Workers, among Those Providing a Response ................... 18 85 80% % Refused Increase the contribution particular, the perc 80 80% enta % ge of workers who expect to 17%   retire after age 17% 65    has increased, from 11 percent in 1991, to Introduction 54% 11% 13% 28% 80% 15%  15%   0. 0.09 09 However, Reality Check? not all work ers who have saved Trefor retirem nd in Retire ent es’are  Actcurr ual Ret ently ire saving m Lefe t nt it in  Ag  plfor t ane his purpose. Fi 19% fty-seven perce 0.09 nt of 80% Figure 16 38% 13% cent, while just 25 percent 75% of retiree respondents 15% to the   13% 26% 2013 RCS report they 18%   worked for 26% pay in retirement (Figure 37). 75 75% % 20%  19%   19%   11% 75% 34% 15% retirees). Importance of Wo 2% rkinSo g With urce sAd  ofviso  Inco r m Wh e oin  Spe  Retcire ializ mees 19 nt  in %   Converting Assets 37  to %   data are weighted by 75% age, sex, and education to r200 eflect 5 th 200 e actual 8 2012 prop201 ortions in the ad 3 ult population. Data for waves 3-percent deferral rat 70% e, while 29 percent would cancel at a 6-percent deferral rate. 15% 39% Basic Expenses Ve rd 70 70% 70 % % rsus Medical 20% 38% ................................................................................................. 41% ............ 10 18%   24 percent in 2003, 29 percent in 2008, and to 36 percent in the 2013 RCS (statistically equivalent to the 37 percent 70 75% 75% 75% % 44% Figure The 2320, wave Total Savings and Investment of th 65%e Retirement Confiden Reported ce Survey by Retirees, among (RCS) finds that Am Those Providing a ericans’ confidenc Res e inp th ons eir e abil ..................... ity to afford a 18 workers in The 2013 Retirement the 2013 RCS 65% 65% report that th Reti ey a rees Confidence Survey: Percei nd/or  Hav their sp ing Save 43% ouse are d Mone curre y forntly saving for  Retirement31 % retiremeved Savings nt (down from 65 per- 65% One reason that retirement confidence may have r 42e% mained low despite a brightening economic outlook is that so 0.07 me 65% Re 22%ti   re 49Ver %m   yent IncoSom mew e Wh hat en GetNo tin t Too g Close toNo  Ret t At Alire l ment, Do Amo n't Knn owg/ RWo efusedrkers 0.07 60% 16% 42%   23% 0. 0.07 07 of the RCS conducte 60%d before 2001 have been weighted to allow for consistent comparisons; consequently, some data in 60 60% % 31% 26% 0.07 32%   ? Getting better advice 60% somewhere else 2003 (6 percent 200834 of %2009 workers and 42%2010    5 p2011 ercent of 2012 retir 42%ees 2013 ). ? Reaction is mixed to a proposal requiring that half the balance 39%   in an employer-sponsored 21% retirement savings observed in Preparing for 2 012 Retirement ) 55% (Figure 55% ...................................................................................................... 34). Nevertheless, the me 36% dian (midpoint) age at which workers expect .................... 14 to retire has remained 55% 38%   0. 0.07 07 55% 0.07 comfortabl cent in 200e re 9, but statisticall tirement 100% 55% rema y equ ins low, 33% ivalent despit to the e the perc imenta provin ges measur g ecoRo nomy. O lled ed in it overne a  in20 to an 10 ppar  IR - A2012) (F ent reasigure 18) on for this . might be the Leave50%  the    contribution as it is 40% 37% workers may be wakin 50% g up to a realization of just how 36% much th Figure 4ey may need to save each year from now until they Figure 21, Confidence That 50% Retirement Savings Are Invested Major source WMin isely, among or source Savers ............................................. 19 Needs Outpace Reality for Many 50% 50 95% 55% 55% % the 2013 RCS may di 50 55% % ffer slightly from 34% data published in Fi previo gure 37 us waves of the RCS. Data present 45%ed in tables in this 45% 45%   45% 7%   35% 44% Saving for Retirement 45% ......................................................................................................... 136% 9%   15 43% % ................. 14 plan be automatically conv 42%   erted to an annuity at r 40%etirement. Thirty percent of plan participants would strongly stable at 65 for most of t 45 45 90% % % 31% his time. 47% 34% 18%   46% 43%      realization by many 40%workers of just 51%   what will be ne41% eded to secur    e a financially comfortable retirement. Others reasons 40% Average Percenta199 Th gee1   of yea  In r199  yo co u8me  reti red 20 tha 03t Wo 2% 200 rk8ers Th 201in 2k Th 201 ey3 Need to Save 32% 0.09 40% Less than $1,000 Figure 20%  29 27% 29% 30% 28% retire so they can live comfo 40 85% % rtably in retirement. On 42%   e-third (33 percent) think they need to save 20 p0.e 05rcent or less of Copyright Information: 40% This report is copyrighted by the Employee Benefit Re28% search Institut 28% e (EBRI 0.05 ). It may be 35% 32% Comparison of Expected (Workers Expectin10% g to     Retire) and  report may not total to 35% 100 due to rounding and/or missing categories. 28% 0.05 By Ruth Helman, 35% Mathew G 36%  r Dieenwald d not  & Associates; an Wor d keNevin Adams, rs 33% J.D., Cr 44% aig Copeland, P 77% h.D. 0.05 , and Jack Figure 22, Americans R 35% eporting They Dipped into Savings to Pay for Basic Expenses ............................................ 0.05 20 80% 38% 34% oppose th35 e 30 % %proposal, and an additional 16 percent wo Rou26% llld some  it over intowhat o  a plan with ppose it, while 11 percent would strongly Savings and Investments ....................................................................................................... 31% Partic 16% ipa   ted  49% .............. 17 0. 0.05 05 30% Social Security 6%   0.05 30 30% 35% 35% 35% % to Live29%  Comfortably in Retirem 36%ent, by Retirement Confidenc25 e %and Age 38% may include more imme 75% diate fina Rea ncial c24 tio% conc n to Pro erns abo posal fo ut job r Partuncert ial Annui ainty a 7% tizatnion d de  ofbt as  Retirwe emll conc ent  erns a 15% bout the cost of 25% 37% 24% their total household EBRI Employee B30 ene % income, but fit Reseapa rcrtic h Iipa nstit 2 in te ute I10 (20 ssue Brief perc (ISent) put th SN 0887 Ret ?ir13 ees 7at X) target is publis h at bet ed m 70% ont whly een by20 and 29 the Employ 23% ee percent, an Benefit Resear d n che In arly stitutone- e, used without permission 25% but citation of t Act hu e source al (Retir is re ees) Wo quire rkd  fo . r Pay in Re 42%t  irement 93% new employer 25 25% % in plan with  22% 50% 70% 20% Continue the contribution, but decrease the amount VanDerhei, Ph.D., EBRI 40%   34% 25% 51% 41% Respondent 22% Respondent 34%  and/or     Spouse 20% $1,000 -$9,999The year be 55% fore you retired 19 16 17 18 18 favor the pro 20 20% % posal, and 35 40% percent woul32% d s   omewhat favo 4%r it. Figure Retirement Sa 11023, 0 13t Reported Tak h St. NW vings Plans , 65% 15 S%uite 8 e78, 25% -U in p of Em W ......................................................................................................  pla ashi n with ngton,  ployer DC, -Sponsor 20005-4051, ed Retirement at $300 per year Saving or is incs Pla luded n as s, amo part of n a g Eligible Wo membership su............... 19 bs rkers cription. .............. Periodi-20 38%   Plan Balance at Retirement, Among Plan Part24% icipants retirement. Nevertheless, wo 39%rker savings remain modest, and less than half appear to be taking basic steps needed to 20 15% % 28% previous  Figure 18 35%   14% 15%38% 17% 17% 0.07 0.03 quarter In theory, (23 percent) indicate they the weig 15% hte 10% d sample of need 1,254 y to ields a save 30 percent or mor statistical precision o e (Figure 3). f plus or minus Nearl 33% y a quarter 3 percentage 24% (23 percent points (wit ) said th h 95 per- ey 60% 23% 28% Figure 34 41% 16%    26% 24% 37% 26%   25% 24% 0.03 15% 15% previous  24%  22%   Put it into person27 al% , no    n- 74% 0.03 cals postage rate 15 10 pai 10% 15% % % d in W22% ash  in 21% gto   n, DC, and addi 23% tio  nal mailingWor offi 22% kce erss. POS 21T %MASTER: Send 54%address changes to: EBRI 0.03 Issue Brief, 1100 10%5% 17%   16% 10% 20%   75% 55% employer 34%  9% 71% 71% 21% 21% 17% 0. 0.03 03 13% 14% 0.0.03 03 5% 5% 19% Empl 40%  oyment Contribution Limits? 10% ............................................................................................................................. 1 34% 34% 20% 47% 9 Recommended Citatio prepare for retirement. 5%0% n: Ruth Helma Wo n, rkNe ervin Adams, C s Currently Sa raig Co ving Mone pela rend, tir68% eyme  and Jack fo n6tr  8% sa  Re vingti s re or Va mneDerhe nt i, “20 68%13 Retirement 13th St. NW, Suite 50% 878, Washiem ngtpoloy n, er DC, 20005-4051. Copyright 2013 by Employee Benefit Research Institut26 e. % A6% ll rights reserved. No. 38 4. Figure didn cent c ’t kno e24, rtainty w Rea ho ) of ction to A w muc what h. the $10,00 utomatic Enrollm results woul 0 -$24,999Tr d 67% e ent at be if nd 33%  in all 3% a  Wo Americ r14% ke n 13 rd 6% Deferral sRe’ans age 25 a  tExp ireese13 c16% 7% ted 15Ret %, 11 namong id ol re5% mder ent10 Workers Not Co wer  Agee s12 urveyed wit 11 ntributing to or h complete accu racy. 22% 0% 0% 50% 32% Workers 66% Retirees 9% 5% 0% -5% 2 to 4 ye18% ars before 18%  U you nde  reti r 45re 5% d 65%45 or older11% 9% 6% 45% 1993 1994 1995 6% 1996 1997 199 6%8 1999 2000 2001 2002 2003 2006% 4 2005 2006 2007 2008 5% 2009 6% 2010 2011 20125%2013 64% 64% --5% 5% 30% 47% Workers Ret inves iree tme s nt account -10% 1993 1994 1995 7%1996 1997 1998 1999 Canc2e000 l the2001  62% cont2002 ributi2003 on 2004 2005 2006 2007 200862% 2009 2010 2011 2012 2013 -0% 5% 1993 1994 1995 1996 1997 16%1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100% 2011 2012 2013 40% 1993 1994 1995 1996 1997 1998 1999 2000 61% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 At a Glance: Confidence Target Not O -Sett Suing rvey: Perc ffer............................................................................................................................... e - --5% 5% d Plan 5% eive .............................................................................................................. d Savings Needs Outpace Reality for Many,” EBRI Issue Brief, no. 384, March ................... ...... 21 2013. 21 -10% 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 199 1998 8 1999 1999 20 2000 00 2001 2001 2 2002 002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 20 2009 09 2010 2010 2 2011 011 2012 2012 2013 2013 0.01 -10% -15% 1993 28% 1994 1995 1996 1997 1998 59% 1999 2000 6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0.05 There are other possible so -10% urces of error 8% in all surveys, however, that may be more serious than 5% theoretical calculations 35% -5% About the 2013 RCS 4% 16% 1993 3% 1994 1995 1996 1997 1998 1999 2000 2001 7% 2002 2003 2004 2005 2006 2007 200 8% 3% 8 2009 2010 2011 2012 2013 0.01 -15% 2% 6% 6% 6% -15% -20% 2% 6% Wor 2%kers 42% 2% 30% 5% 8% 2% 8% 5% 0.01 7% 7% 1% Employer-sponsored  1% 72% 7% 0.01 -15% $25,000 -$49,999 66% 15 25% 12 5%11 4%6% 12 11 10 9 5% 0. 0.01 01 Findings from this year’s -10% 30% RC 6% S include: 6% 5% Spent or used it to pay off 4% 12% 0.01 Yearly 5% 5% -20% -25% 4% 3% 4% 4% -20% 2% 3% 1% 3% 3% 4% 3% 1% 31% 3% 63% 3% 3% 3% 3% 0% Planning by Retirees -20% 25% Year .......................................................................................................... Ve ly ry Confident5 to 9 yeS 2% ars omewhat  before 2%  you reti Notre  Too d  Confident 2%Not At Al19 l Co %2% nfide2% 2% nt Don2% 't28%  kn1% ow / .................. 23 0.01 of sampling error. Th -15% Ye Ye Ye ese i a aarrrly ly ly nclude 1% refusals t 1% 1% 0%o be 0% interview Reed tire a e1% snd other 1% 1%20% fo 1%rms of no 22% 1% nre 0%10% s1% ponse, the 10% 1% 10% effects of question -25% Ch -30% ange in 0%retirement sa 1%vings 0% plan 61% 0% 0% 0% 0% 42% Figure 25, Participation Yearl in y Plan With Previo 0% 0%35% us Employer and Disposition of Plan0% Mone 0% y22 0% ? The percentag -25% Yeae of workers confident rly about havingFig en 41% u 4% ou re   gh  3 9% mon 4% ey for a comf de9% bt 9%ortable retir 43% ement is essentially -- --25% 25% 25% 25% Yearly 59% 59% 3% -20% 20% Change in 3% 74% -1% -1% -30% -Ch Ch 35%a an ngge e  in in 11% 8% 8% 39%   2% 2% 3% defe 2%rral 8% 2% No Chat nAt ge  Al  inl 1% -2% 1% 1% 5% -2% 1% 1% Report availability: -30% Chang This r e in eport is -3% available on the Internet at www.ebri.org 0% Con34% fi-d 4%e   nt -4% 7% 72% Refused -30% 15% Ch Cha an ngge e  in in -1% -5% -5% - -25% 35% The Em -2%ployee Benefit Research Institut 6% e (EBRI) was founded in 1978. Its -0.01 mission is to -40% Not At All No No Nottt   At At At   Al Al Alll$50,00 l Very -C0 1%onf  -$99,9 iden -1% t -2% 99 Somew 54% -1%70 1 Don 1% -h 2% 'ta  kn t Co o - -1% 1% w12 n  /fid  Reefnuts-e1% d12 --N 2% 3%ot Too11  Co --1% 3%nfident9 70% Not10  at All 70% Con10 fident wording and question or -35% Not At All der, and scre -1% ening. Wh -4% ile attem 17% pts are made to minimi -4% ze these factors, -4%69% it is impossible 0.03 to The Policy Perspec Retiremetives nt Confid -35% 10%........................................................................................................... ence Survey Perce(RCS) ntage of gau  Hou gese s hthe -o 2%ld In view cos mand e  -2% tha- -attitudes t 3% 2%  Wo - -3% 2%rkers of Thin worki k -2%   n -3%g-ag ....................... 23 23 e % -2% and retired Americans unchanged fro -40% No No52% tt  At Atm   Al Alll the record lows observed in 2011. While mo 52% -3% -3%68% -3% re than half express some level of confidence (13 per- -3% -0.01 -30% -45% -4% -4% ? The percentage of workers confident about havin Wor - --5% 4% 7% kge renou s67% gh money 27% 30% for41% a comfortable 6% deferrrealtirement is essentially Figure 26, Workers Having T -40% ried to Calc -6% 50% ula199 te How 1 -5%19 Much 98 200 Money T 3 200 h8 ey N20 eed 12 to Sav 2013 e for a Com 68% - -5% 5% fortable -- - -0. 0. 0. 0.00 0011 11 66% 66% 66% 66% 5% -0.01 -40% 5% - -9% 6% contribute to, to encourage, and to enhance the developmen -1% t of sound employee benefit -45% -50% 10 to 19 years before you retired 14% 32% -35% 48 Indi %vidual retirement account or IRA -8% -2% 2011 -3% -3%2012 2013 -- --45% 45% 45% 45% 63% 13% 63% -45% 0% Very Valuable Somewhat Valuable Not Too Val -4%uable Not at All Valuable quanti Fee Disclosures fy the errors that may -50% ............................................................................................................... -55% result -5% Th from t ey Nee hem. d to  Save to Re Liv tire ee  Com s 13f%ortabl27y%  in Retirement .................... 23 regarding retirement, their preparations for retirement, their confiden 40% ce with regard to various aspects of -40% 61% 33% -0.01 Who we are cent are very c -50% onfident and 38 percent are somewhat conf 11% ident), 28 percent are not at al 11% l confident (up from 23 per- Retirement unchanged .................................................................................................................... from the record lows observed in 2011. Half express some level of confidence, with ..................... 13 percen22 t very --55% 50% -5% -60% programs and sound public policy through objective research and education. EBRI is the only 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 10%2009 2010 2011 10%2012 2013 $100,000 -$249,999 11 15 12 11 14 11 12 -45% 9% 9% -55% -- -60% 10% 55% -65% rd -0.03 56% 8% 8% 29% 10% 8% 7% Annuity Options --50% 60%.................................................................................................................................. 24 retirement, and -65% related issues. privat The e, nonprof 2013 iRCS t, nonpar is tisan the , Washington, DC-b 23 annual wave ased organi of this zat proj ion com ect, mmakin itted exclusivel 0. -01 0.03 g it the y to longest- cent in 2012 b - -60% 15% So So So uu uut statistically equivalent to 2 rrrce: ce: ce:        Employe Employe Employee ee   Be Be Benefi nefi nefittt   Re Re Ressse eea aarrrccch h h   In In Inssstttiiitttu uuttte ee   an an and dd7    Math Math Ma perc thew ew ew   Gr Gr G ent in 20 re eeen e en nw w waaallld dd   & & &   A A A11), and 21 pe sso sso ssoccciiiaaattte ees, s, s,   In In Inccc...,,,   1993 1993 1993- - -2013 2013 2013 rcent are not too confident.    Re Re Retttiiirrre eeme m me en n nttt   Co Co Con nnfffiiid dden en enccce ee   6% Su Su Surrrvvvey ey eysss...6% So So So So So So So So So Sou u u u u u u u u urrrrrrrrrrce: ce: ce: ce: ce: ce: ce: ce: ce: ce:                             Em Em Em Em Em Em Em Em Em Empl pl pl pl pl pl pl pl pl ploye oye oye oye oye oye oye oye oye oye 20e e e e e e e e e e            Be Be Be Be Be Be Be Be Be Be years ne ne ne ne ne ne ne ne ne nefi fi fi fi fi fi fi fi fi fitttttttttt            Re Re Re Re Re Re Re Re Re Re orssssssssss e e e e e e e e e emore a a a a a a a a a arrrrrrrrrrcccccccccch h h h h h h h h h          In In In In In In In In In In ssssssssssbe ttttttttttiiiiiiiiiittttttttttu u u u u u u u u ufor tttttttttte e e e e e e e e e          an an an an an an an an an an e d d d d d d d d d dyou           Math Math Math Math Math Math Math Math Math Math  re ew ew ew ew ew ew ew ew ew ewti          rG G G G G G G G G Gerrrrrrrrrreen een een een een een een een een een d w w w w w w w w w waaaaaaaaaalllllllllld d d d d d d d d d          & & & & & & & & & &          A A A A A A A A A Asso sso sso sso sso sso sso sso sso ssocccccccccciiiiiiiiiiaaaaaaaaaatttttttttte e e e e e e e e es, s, s, s, s, s, s, s, s, s,          In In In In In In In In In Incccccccccc..........,,,,,,,,,,          2013 2013 2013 1994 2013 1993 1993 1993 1993 1993- - -    - -  -Re Re Re Re 2 2 2 2 2 2013 013 013 013 013 013 ttttiiiire re re re       Re Re Re Re Re Re m m m me e e ettttttn n n n iiiiiirrrrrrtttte e e e e e    m m m m m m Co Co Co Coe e e e e en n n nn n n n n nffffttttttiiiid d d d       Co Co Co Co Co Co en en en enn n n n n nccccffffffe e e eiiiiiid d d d d d     Su Su Su Su en en en en en enrrrrccccccvvvve e e e e eey ey ey ey       Su Su Su Su Su Su .... rrrrrrvvvvvvey ey ey ey ey eyssssss...... confident and 38 perc - --65% 65% 65% ent somewhat confident,Wor whi kelre 28 s pe 25%rcent are 39% not at all con 34%fident (up from - - -0. 0. 0.0 003 33 23 percent in Under $250,000 $250,000 to $500,000 to $1,000,000 to $1,500,000 or 64% Don't know /  --55% 65% 3% 34% -0.03 Figure 27, Amount of Savings Workers -20% Think They 2% Need for Retirement ........................................................... 4% 2% ... 23 -65% 65% -0.03 Other personal savings and 1%  investments 1% 1% The RCS was co-sponsored by the Employ 0% ee Benefit 64% Res 0%earc 8%h In64% stitute (EBR 8% I), a private, nonprofit, nonpartisan, public policy research and edu24% cation on economic security and employee benefit issues. -60%Sour Yearce ly :  Employee Benefit Research Institute and Mathew Greenwald & Associates, In2% c., 22% 013 Retirement Confidence Survey. 10 -25% $250,000 or62%  more 62%7 121 Retirees21 16% 37%11 29% 010 12 running retirement survey of its kind $4 in 99the ,999 nation. $99 9,999 $1,499,999 mo 45% re 61% 61% 31% 1% Don’t remember Use of Financial Advice ............................................................................................................................ 24 39 41 42 2012, but statistically equivalent to 27 percent in 2011), 60% and 21 percen 60%t are not too confident. 32 21 12 22 25 5 8 7 1 --65% 30% Change in 34% -0.03 21% 21% 21% 59% 58% 58% EBRI’s membership includes a 32 -1% % cross-section of pension funds; businesses; trade associations -1% 57% ; public-policy-research organization; and Mathew Greenwal16 d %& Associates, Inc., a Washington, DC-based market Figure ? 28, Retiree co Timeframe When nfidence in havi -35% Not At All -2% Retirees ng a -2% Bega financially sec n to Plan uFi re retireme nancially nt is also -for R 2% etirement, amo unchanged, with18 percent very co ng Retirees Who Planned for nfident and -3% -3% -3% Don-'4% t know / Refused 1% 2% 24 -5% -40% 17% 28% 26% -0.01 Expectations about Retirement ................................................................................................. 0% to 9% 26% 26% ................ 26 27% Workers 27% 8% 31% 26% 27% Employ labor un er-proviions; h ded traedalth ition car al  e providers and insurers; government org 57% anizations; and service firms. 26% 26% ? Retiree confidence Beforein  60having 25% a financ 60-64ially s 25%e 25% cure retirem 25% 65 ent is also 66 unch -69 anged, with 70 or 1  ol8der percent very confident -45% 25% 25% Retirement .................................................................................................................... 2013 Retirement Confidence Survey Underwriters ..................... 24 research 14 percent not at all confident. firm. The 2013 24% RCS data collect24% ion was funde 24% d by grants from about two dozen public and private The survey was conducted in January 2013 through 20-minute telephone interv 23% iews 23% with 1,254 individuals (1,003 11% -50% 22 So So% u urrce: ce:     Em Empl ploye oye 22% e e  Be Bene nefi fitt  Re Resse ea arrcch h  In Inssttiittu utte e  an and d  Math Mathew ewRe   G Grrteen een irew w esaalld d  & &  A Asso ssocciiaa35 tte e% s, s,  In Incc..,,  2003 2005- -2 2013 013 24%   Re Rettiirre em me en ntt  Co Con nffiid den encce e  Su Surrvvey eyss.. As with Social Security, worker pensi cono fidence about n or cash balancet  pl he futu an re va lue of Medicare benefits is hi 59% gher among those age Retirement Age ................................................................................................................................... 26 Thirty-o Notably, w ne o per rke crent of confi work denceer as report t bout havih ng ey ehad to nough di money to p p into their a savings y for me d to pay ical exfor pen basi ses a c ex nd l penses ong-ter wi m c thin th are e e xpast 1 pense2 s in -55% Very important 21%21%Somewhat Not too important Not at all Will not work with (statistically equivalent to the 21 percent measured in 2012) and 14 percent not at all confident (statistically 19% 10% to 14% Figure 26 20% 8% organizations, with staff time donated by EBRI and MathFigu ew r Green e 6 wald & Associates. RCS 14% materials and a list of workers and 251 -60%retirees) age 25 and older in the United States, using random digit dialing along with a cell Figure 29, Reaction to Propo So Sou urrce: ce:     Em Empl pl soye oye al e efor Partial   Be Bene nefi fitt  Re Resse ea arrcch h Annuitiz   In Inssttiittu utte e  an and d  ation of Math Mathew ew  G Grreen eenRet w w aalld d  i& &reme   A Asso ssocciiaant Plan Balanc tte es, s,  In Incc..,,  1993 2011- -2 2013 013  Re Rettiirre e em ma e en nttt   Co Co Retir n nffiid den enecce ement,   Su Surrvvey eyss.. among Plan Figure 33 19 27 On the 45 and older, other hand, and r retir etirees ar ee coe more likely nfidence abo t im uh t a po an rtant fina workers t nciallyo secure be conf retir ident ement conti im in t portant hose prospects. nues unchan advisoEven so, just 9 r ged. Eighteenp perc ercent of ent are retireme Workin nt re g for P mains w ay in eRetir ll bele ome w th nt e l .............................................................................................................. 30 EBRI’s work advances knowledge and unders evels of confidence in the ability to pay for tanding of emplo basic expenses. T yee benefits and their he percentages of months. A smaller -65% percentage of retirees (25 percent, down from 33 percent in 2011 but statistically e -0.03quivalent to 17% ? One reason th This survey at retirem was made ent confid possi ence ble ha by t s remaine he financial su d low dpport espite of the a brighte followi ninn g eco g organiz nomic outlook ations: may be that Figure 40 equivalent to 19 perc 16% ent in 201 Worke1). rs16%   Having Tried Fi to Figu Figu Figu g u Cal re rrre eecul    13 11 23  9ate How Much Money 199419951996199719 Ab 98ili19 ty99  to 20  00 Com 200e1 20 up 02  Wit 20 Figu 03h20 r  $2,0 e0  443 20005 0 20 if 06 an20  Un 07e 20x08 pe20 ct09 ed 20  10201120122013 underwriters may be accessed at the EBRI Web site: www.ebri.org/surveys/rcs/ phone supple Participa ment nts .................................................................................................................. to obtain a representat ive cross section of the U.S. populat ion. The survey ...................... has a stat 25 istical Workers Expecting to Retire Later Than Planned So Sou urrce: ce:     Em Empl ploye oyee e  Be Bene ne importance to fi fitt  Re Resse ea arrcch h  In Inss14% ttiittu utte eth   an ane nation’s econo d d  Math Mathew ew  G Grreen eenw w aalld d  & &my   A Asso sso ccamong policy iiaatte es, s,  In Incc..,,  1991 2013-  Re 2013 tire m  Re makers, etn irte m Coennftithe news d  Co enncfeid  Su enrcveey  Su .media, and rveys. 14 28 the public. It very confi retirees are v dene t about ry confi havin dent in g enough mon the value 15% to of  19 e ty to live % he future comf benor efits tably thro paid by ughout th Medicare eir r , whil etir e 19 r ement y eport ears (statistically they are not at all 11% 22 workers who percent in are not 2012) say they had to at all confident dip into their about being ab savings to le to pay for pay for ba post-retirement sic expens me es ( dical Figure expens 22). es Th (e re 29 perc porte ent, d likup elihood from Sources of Retirement Income ............................................................................................................. 30 some workers may be Ret waki ireen  Conf g upid to ence a r eTh aliaztation o  Social fSe jus cutr ihow m ty Willu  Con ch tthe inue y m  to a y ne Proved ide to   save. Asked how much Th Ret Wo Ret eRe yirre  kNeed iere pero   eConf Co r tConfi e  to ndf i id Ta dSa ence d ekvn ence eec - up efo   in in r   in of    aHa Ha    Comf Ha Em ving vin vin pgl o ort  gEn En y  En eaoou rbl u -oSp gh u gh egh  oRet   Mone n Mo  Mo sore ire ne ne m ydy e   yto to nt   ExpeNeed cted  (W Aroor sek ers Wit  Exp hin ethe ctin  Ne g to xt  Re Mon tireth) and  11% 11% Workers ? Asked ho who leave a w m nu em ch th ployer that o ey belidoes this b eve they ffers a defin wil y co l nnducting eed to ed co save to ntributio and publishing policy re achieve n plan di a ffer fina on ncially sec sear wha ch, analysis, t they uredo retireme with and their savin special reports on nt, a striking gs in that precision of plus or minus 3 percentage points (see methodol ogy section). As we What we do have seen in prior it So Sou urrce: ce:     Em Em erpl pl ations of t oye oyee e  Be Bene nefi fitt  Re Ressh e ea aerrcc h hRCS, work   In Inssttiittu utte e  an and d  Math Math ers ew ew  G Gwh rreen eeno w waahave lld d  & &  A Asso ssoccdon iiaatte es, s,  e In In a r cc10% ..,,  2013 1994 etirem -  Re 2013 tire  Re mee tn irnt te m Coe savings n nnftid  Co enncfeid  Su enrcveey  Su .e rve eyds.s calculation tend to 38 35 Figure confident (Figure 42 equival30, ent Follow-Through o to 21 perc ). ent in 2012), n Implement and 44 ing Advi percent are ce, amo somewhat ng Those confident. Receiving Invest At the sment Adv ame time, ice 14 .......................... percent say they are 25 14 percent AARP in 200 7 and 24 percent 9% in 2012) and long-term care expens 9% es (39 9% percent, up from 9% 21 percent in 2007 and of dipping into savings anBen d ine vestme fits of nts de at Leas creases as sav t Equal Value to ings a  Benned MassMutual Financial G fits inves  Rectments or ho eived by Retiurees sehold  Todrincome aoup y s rise. Confidence in Entitlement Programs Re Pay Pa tiyre ............................................................................................   to fo fo mr  re Pay   Lo Lo ntn  n  Sa fo gg--vin rte te  Ba rrgm m ssi   cCa Plan Car  Exp rees,   eEE xnxAm pe spens esns o  in nes es g  Re   E  in in ligib t  iRet Ret rele miire  re eWo nm m tereknt nt ers ......... 31 they believe they will 8%need to save to ac Actual (Rhi eteve a irees) fin  Spe ancial nding ly secure  in Retir retir emen etment, a striking number of workers cite emplo 20% to y  29 ee benef % its issues; holding educational briefings for EBRI memb 20% ers, congressional and Very confident Somewhat confident Not too 7%  confident 7%Not at all confident 7% 7% Figure 20 plan. Forty number percent r of wo eport rkers cite that the last tim large savings e this targets: 20 happened t perc hey rol ent say they led some or all need to of save the mon betw ey ov een 20 a er into nd an 29 in perc dividual ent o f Strongly favor Somewhat favor Somewhat oppose Strongly oppose Don't kn 6%ow 6% have higher savings goals than workers who have not done a calculation. Twenty-four percent of workers who have Of those few who made changes, the most common actions were to move money out of more expensive i 31 16 nvestments not at a Endnotes ll confident (statistically e quivalent to the 19 percent measured in 2012). Another 22 percent of retirees are not 34 percent in 2012) have increased since 2012. At the same time, the percentages of workers who are very confident federal agency staff, and the news media; and sponsoring public opinion survey s on employee large savings t 1998 argets: 1999 20 20 00per 2001 cent say th 2002 2003ey 20need 04 20 to save 05 2006 betw 2007 een 2008 220 0 a 09nd 2010 29 pe 2011 rcent 2012 of the 2013 ir income and nearly FigSpending in ure 31, Importance Retirement of W ........................................................................................................ orking With Advisor Who Specializes in Converting Assets to Retirement Income ............... 33 The RCS is co-sponsored by the TotaEmployee l Savings anBenefit d Investm Re ent se a rRe ch po Institute rted by R(EBRI), etirees, a private, nonprofit, nonpartisan retirement acc their in ount come each year, (IRA), while an almost as d nearly o many (38 ne-quarter perc(23 perc ent) le 2% 2% ft some ent) in or all dicate of they n the money in eed to sa the ve 3 plan. A 0 percepnproxi t or more. mately Spending in Retirement 30% to 39% Respondent Respo 8% ndent and/or Spouse done Retirement Savings or to w Expecte a ca ithdr dAmeriprise Financial sour lcula awces of tion, compar money income from t Plans e d in reti h w e iplan. th rement 13 Howe perc among ent of ver, small those worker pro ws have c h po have ortions i Merc h not, anged sli ncreer estimate they ased th ghtly over e shar need to acc e of time. Alt money hough virtual go uming to ulate at less least ly all expensive re tirees benefit issues. EBRI’s Education and Re search Fund (EBRI-ERF) performs the charitable, too confi dent. Like worker co nfid Veryence, retir Someee con what fidenc Note  Too Wor in havi kersng eno Not At Allugh Ret money ireesDon't Kn fo owr retirem /Refused ent has varied over the about various financial aspects of reti Very rement have remai Somewhat Notn  Too ed stable, No with abo t At All ut 1 in Don't Kn10 v ow/Refeury confident a sed bout being able When Getting Close to Retirement, among Workers ............................................................................... 26 Very Somewhat Not Too Not At All Don't Know/Refused one-quarter (23 percent) indicate they need to save 30 percent or more. Among Those Providing a Response publi RCS Met c poli hodology cy resea ............................................................................................................... rch organization, and Mathew Greenwald & Associates, Inc., a Washi ..................... 35 ngton, DC-based market 3 Source:  Employee Benefit Research Institute and MathewFigur  Greenwe al d15  & Associates, Inc., 2013 Retirement Confidence Survey. 1 one-quarter each indicate some or a educa ll oftiona the mon l, and scientif ey was put ic func into tions of the Instit a personal, non ute. EBRI -retirement savi -ERF is a tax-ex ngs or investme empt organizatio nt n 100% Source:  Employee Benefit Research Institute and Mathew Greenw ald & Associates, Inc., 1994-2013 Retirement Confidence Surveys. $1 million for retireme 100% 100% nt. At the oth Very er exSo trmewh eme, 2 at 1 perc Noet n Too t of those Notwh  At Alo have l don Don'te  Kn a ow calculat /Refused ion, compared with About h Workers’ ex investments, s continue ? a to r Aggres lf of pe eplan port rec ctations of tarted co sive partic ase ivin thos ntributing less mon ipa ho g n e targ w th income ts (5 eir spen 2 ets perc from S appe en dit) also say ar to ng is e oy to th cial S be, likely e e curity, they may tha plan to change i t, havin or started co the not perce g th nbe ret e nbas tage of fi irnancial e ntributi e ment var d on workers - a servic ng mor caref ies f es company e r ul a eom the x money pecti nalys n ex g inco to th is of i t per hat ha im e plan. n ence divi e from ndl dual ofe curre this s s th eir nt ource 23 y In the RCS, re ears of the RCS. tirees refer to i It remained fa ndividuals who are retired or wh irly steady at roug Wor hly 40 kers o are age 65 or older an percent Retire v es ery confident d n and ot employed fu 10 percent not at ll time. Worke all confrs refer ident One of the primary vehicles that workers use to save for retirement is an employer-sponsored retirement savings plan, to pay for medical95% expenses (14 perc 40% ent,  to 49 down % from 20 percent in 2007 but level with the 13 percent in 2012) and 95% 2%   2% 95% Before 60 (not includi 60n -64 g value of 9%  p   rimary 65  residenc 66e -69  or define7d0  ben or ole der fit planNs)ever retire 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fig resea Endnotes ure ? rch 32, Aggressive as t ...................................................................................................................... Val firm ue of . The 90% ReSo comm 201 h urose savings ta ce:  3 Emendatio plRCS oyee Bene supported b fins d t ata Re rgets appear to be, they ma Re searcg hco  ardin Instllection yit uco te53%  g Ho an ntributions d Math w M wa ew Gs ruch to een and g funde waldd  & rants. Wit  Ay sso by not be based on a caref chdr iategrants s, aw f Inc., 2013 rom Pl  Refro tirem me an nt ab CoEach Month nfout idencuel an  Sutwo .......................... 35 rvey alysis of their individual .12% d to oze Help n publi Savings c an d private Best Buy 90% MetLife 14%   account (26 percent 90%), rolled over into a Wor kplean w rs Ha ith a ving ne  Sa wved employ  Mon er ey(2  fo 4 perc r Retent irem ), or ent either spent or used to 4 pay off debt 25% 9% Fi 16% gu   re 36 50% 9% 37 retireme retirees. has dec percent line nt pla circumstances Fifty d wh f-reight n o have om 88 give percent th percen not, th .em r Only e of the form t in icommendatio n 46 k they per 1991 c nee ent re to 7 er dexpect that 7 t ns as to ho port t percent o save less th hey in and/or t th w 2much 013 eir spending i an $ (statistical h2 to eir 50 with spouse have ,000 draw n fly equivale retir or retirem from th ement tried to calc nt t e eir nt. will pla oAdditio be 79 n lo percent ea ula wer t ch mo n te ho ally, a h ian th w muc n 2 nth to n 0.37 09 d co 011 eir h hel nsistent an pre money they p d - sa 20vings 12). with to all individuals who are not defined as retir 85% 95% 14%   ees, regardless of employment status. from 2002 thr such as a 401( ok). Ei ugh 2007, 85%ghty-tw but the o percent o percenta f eligible ge very workers 7%   c24% onfid(38 ent d percent of all e 21c%lin    ed in 200 workers) s 8 and 2009 ay they (Figurpartici e 2). pate in such a plan long-term care expe 85%nses (11 percent, 11% down from 17 percent in 2007 but statistically equivalent to the 9 percent 28%   Definitely could Figure 17 27%   33% 34% Last, among 80% Plan Participants ................................................................................................. 48% 38%   11% ............. 27 80% 6%   15% organizations (se 80%e funders box). The full 7% report, RCS fact 47%sheet 33%s,    and other resources are online at circumstances. Only 46 percent report 50% or more they and/or their spouse have tried to calculate ho 17% w much money they will 0.29 09 Annuity Options Source:  Employee Benefit Research Institute and Mathew Greenwald & Associate13% s, Inc., 2001-2013 Retireme52% n46% t Confidence Survey 46% s. (28 percent) (Figure 75% 25). Those age 35 an Tim d ol inder g of (com  Retire pared mentwith , Am thos ong e ag Retires 2 ees5-34) and th22% ose with household incomes prior RCS findings, despite 75% higher savings goals, workers who 30% have done a retirement savings n 39% eeds calculation are retirement spendin and The per investmen cwill enta nee ge ts last throu of d to workers 75% g, com have saved by pg e ar hx ed opecti ut retir with 11% ng t hal h e to r e tim ment f e (48 percent ceive e woul they r ben d e be tire so t e)fits ver of r from ye valuable. tirees hat t a de h rey can eporti finThi ed bene rty-six ng t livehey cfit pla operce mfortably exp n has eri nt think ence als in d a it o retireme d dec woul ecre rd be e ant. a sed se in somew sli s ghtly fr penh din atom g. 44% 44% with their current employer, and another Wo 8 perc rkers Ha ent o vingf  Sa elivgeibl d eMon workers ey for report t Retirem h 21 e ey nt %,ha   ve money in such a plan, although measured 2 in 201270% ) (Figures 8 and 9). 51% 29%43% 43% 70% 70% EBRI Issue Briefs is a monthly periodi 42% 42% cal 42% with in-depth evalua42 tion of em % 42% ployee benefit issues BMO Retirement Services Nationwide Financial Bricker, Jesse, Arthur B. Kennickell, Kevin B. Source:  Employee Benefit Research InMoore, and John stitute and Mathew GreenwaSabelh ld & Asso 20% caus. “ iates, IncC ., 1991 hanges in U.S. Family Finances from 2007 t -2013 Retirement Confidence Surveys. o Indeed, just www.ebrneed to have saved by t i.org 2 perc /surveys/rcs/ 65% 75% ent of wo rkers and 4 percent o he time they retire so f ret 20% that they can live comfortably in retirement. irees identify saving or planning for retirement as the most Figure of $35,33, 000 Wo or rkers Expecting to more (com 65% pared with Retir low e Lat er-income er Than 36%worke   Planned rs) are ..................................................................... more likely to report rolling over 27% money into 18 ........... an IRA. 27 65% 25%   23%   7% Just 17 percen While the 2013t of RCS plan did not partic delve ipants r into eport the that their em reasons for 18%   wpl orking oyer’s retir for pay em in r ent savin etiremg es pl nt, almost all an currently o retirees who ffers an ann did uit work y also more l valuabl Three 70 perc in e, w ent 10ihil in kel we 1 o 200 yrkers (2 to feel v 12 to 60% perce 56 9 nt i e p per ry endicate rcent i c confident ent) an n it201 d ret woul abo 2 irand u d ees (30 t affordi be 57 not too o p perce e nrcen g a nt) say t comfortabl t in r not at 2020% 13. all hat th However, val e retirement uable ey ex pect the (Fig (20 percent per thei ure c 32). r spen entag e din vs. 7 ofg wo in r percent rkers ex etirement 7% who pectin w ha ill g a ve not be or Don't know / Refused by Ho38 us %ehold Income 0.07 they are not currently 60% contributing and trends (Figure 23 , as ). well as critical analyses of employee benef 23% it policies and proposals. EBRI ? Moreover, just 23 percent 60% 41% of workers a    nd 28 percent of retirees report they 24% have obtained inv 32% estment advice 45% Figure 2 25% Our 26%   Probably couRe ld2003 spondent2008 Respo 2009 ndent 2010 and/or Spouse 2011 2012 2013 55% 45%   2010: Evidence from the Surv 55% ey of Consumer Finances.” Federal Reserve Bulletin. vol. 98, no. 2 (June 2012): 1–80. 19% 0.34 07 pressing financial issue 55% facing most Americans today. Figure 30 17%   Not contributing;  36% 42% 27%   Figures The likelihood of spe 50% nding or using some or all of the money to pay off debt also increases as household incom e option. for pay in Yet, there a retirement ppears to in the 201 be int 0 RC erest: S gav M e a ore than ha positive re lf as (56 on for 17 perc % doin ent) think they g so, saying wou they ld di use suc d so becau h ans o e they ption wh want en t ed h to ey Whil donee a ca uncha lcula ngtion). ed statisticall 50% y from Notes 2012, is a monthly worker co p nfi eriod dence t ical pr hat t oviding curr hey are ent in doing a formation on a variety good job of pre 48%p of emplo aring financ yee ben ially for efit Figure is uncha defined 34, ben nge Tr e dend in fi , t pla while 50% n to 1 Workers’ 1 provi perce d Expected Ret n e a t of maj workers or source o i— rement A and f21 pos perc gte -r.......................................................................... etirement ent of retir inco eesme, eith —expect or er the ha irs ve ex or that peri of t ence heir s d an incr pous ............ eease , hais n28 55% 45% Retiree Confidence in Having Enough Money to 23% ? Retirement sav Capital Group from a professional finan ings may be ta cial advisor king a back who was seat to more im 39% paid thromediate financi ugh fees or New York Life Retireme commissions. Of these al concerns: Just 2 percent of workers and money in plan nt Plan Services workers, 27 percent 21% 45% 45% 14% Follow Through 33% on   Implementing Advice,  40% 37% 3 topics. EBRIef 23%   is a weekly roundup of EBRI research and insights, as well as updates on Most retirement savers have more t decreases. 40% han one savings or investment account in which they have set money aside for Contributio Figure 1, Workn Limits? er Confidenc 40% Lesse  th in Havi an $1,00 ng Enough Money t 0 78% o Live Com 23% fortably 27% Througho 28% 28% ut Their 31% Retirement Years ...... 7 retire. stay active an publications d involved (92 percent) or enjoyed working (86 percent). However, the percenta 8% ge who at 5% that time retireme spendi increased som The bas ng nt has e size (Figure 43 e continu for this question was too sm what, 35% ). from ed a sl 27 percent ow decli Ean r in le ier fro  Th 2012 to all to allow for re am n P the lanne peak d 31 perc 38% le Abent in the 2013 RCS. ve out porting of percentages. ls measure  When Plannedd in 20 La07. te r Th Th an Pl e aperce nned ntage very confident, which Live Comfortably Throug 12% hout Their Retirement Years 5% Savings and Investments 0.05 4 percent of retirees identify saving or planni followed all o 35% f the advice, but more disrega ng for reti rded some a rement as the mo nd followed mos st 75% pressing financ t (41 percent)ial issue facing or some (27 perce most nt). 35% 33% 28% Figure Moreover, a 35, Tr significant end in Retirees number o ’ Actual f Americ Retireans carry ment Age wha ........................................................................... t they see as 36%   a problematic amount of debt. Sixteen ................ percent o 29 f 30% 32% 32% Probasurve bly coyAm us, studi 73% ld no ontg es, Th litig ose ation Re32c% e , leg iving isl ation and r Investment egul  Advic ation affe e cting employee benefit plans, while The actual retirement age reported by retirees has changed even more slowly. In 1991, only 8 percent of retir 0.05 ees said 30% 31% 72% 51% 72% 30% 35% 29%   20 71% 09 2013 29%   Most workers retirement (73 perc who state a s ent of wo pecific amo rkers and 51 unt they percent bel of r ieve t etir he ey es). neFurt ed to sa her, ve most of those for retireme n with m t are c ultiple onfideaccounts mak nt that those e 25% 48%   70% 37% reported working soleSo ly for urce:  Em nplooye n-fi e Benancia nefiYe t Re sseal re rch Inasons was sm stitute an 69d%  Math No ew Green all. waNinety ld & A69% ssoci per ates, Incent i c., 2013 Re dtent iremei43% fied at l nt Co 69n% fidencee  Su ast one fi rvey. nancial reason for remained at Dimensional Fund Advisors roughly 25 percent betw 29% een 2003 and 20 6%07, has now Principal Fin declined to 17 ancial Grou pe30% rcent    (from 2 p 2 percent in 2011, but Retirement Confidence 25% 68% 68% Cost of living and day-to 25% -day expenses head the list of reasons why workers do not contribute 26% (or contribute more) to 4 Figure 2, Retiree Confidenc 20% e in Having Enough Money to Live Comfortably Throughout Their Retirement Years ...... 7 Americans today. Both worker EBRI’s Blog s and retir supplements our regular publications ees are most likely to identify job 66% unce , off rtainty (30 ering commentar 66% percent of wor 66% y on questions kers and A sizable percentage of wor $1,000 kers have vi  -$9,999 40%   rtually no 54% money in savin 17 gs a15 nd investment 14 s. Among 19 16 workers providing this workers and 13 percent 20% of retirees r 36% eport their level of debt is a major problem, whil 93% e an94 additiona % l 44 percent of Revised Augus ? Sixty-six percent of workers t 2013. 20% report they a 13% nd/or their spouse have saved for retirement, although a sizable they retir Those workers ed after age who rolle 65.d r Th et is perc irement entage i saving ss pla 14 perc n mon ent ey in over 2013into an I (statistically l RA most often did so evel with the 18 to perce a finnancial t measure instituti d inon Figure Reaction 36, is mi Timxed to a ing o 15%f Reti pro rem posal requirin ent, among 82% g Retirees that hal 74% f............................................................................... th18% e balance in an employer-sponsored retirement savings ............... plan be 29 amounts will provide them with a comfortable retirement, though they tend to be so 34%   mewhat confident (57 percent) In fact, investment As a caution retirdecisions about e ar es are more lik y note, althou each acco ely to gh Ver 57 y pe desc rcent unt rib Soe separately mew t of work h 30 he at%ir e    xers sur p (71 perc eriNo en t Too c ve ey in ed en r said e t o tire fNo wo they ( men t At Al rkers and 63 lt w oir their sp th re Dospec n't Knpercent oouse t to their w/Refu) sedexpect to of r finances to be etirees) r receiv ather e ben worse the an fits 15% having worked, such as 15% wanting to buy extras (72 percent), a decrease in the valu 55% e of their savings 3%or investments statistically equivalent 10% to 19 percen rece t inived from 2012). Th news e perce reporters ntage , p not at olicym a akers ll confident ro , and others Not . EBRI cse from ontribut ing; Fundamentals of Employee 12 percent in   28% 3 2008 to their employer’s plan, with 41 percent of eligible workers ci 22%  ting these factors. Other reasons cited for not contributing 15% 52% 52% 52% 52% 16% 3% 27 percent of retirees) and making ends 10% meet (12 percent each). 16% 0.03 10% 51% workers an type of inform d 26 percent ation for 5% the R of reCS, 57 tirees descri percen 68% be it t report as a mi that 28% nor t68% h pr e total ob17 lem. I % valu    ne aof the dditio 15%  in r ho , 25 use per hcent of work olds’ savings er and s and 15 perc investments, ent of 5 Figure 3, perce Percentag ntagee of of workers re Household I por ncom t they e that have vir Work tually no 80% ers Think saving They s or investments. Am Nee 50% d to Save to Live Comfor ong RCS worker 50% tably i 0.03 n r espondents 201 with 2) (Fi whicg h th uree 35). y had a In contra pre-ex st, the me 15% isting r De   finitee lylations  co dian ul49% d not (mi hip dpoi (38 nperc 67% t) age at ent) or whic to some h retirees report th other compan ey actual y altoget ly reti her (43 red perc has rema ent). Few ined at 66% 49% automatically converted at r 5% etirement48 to a % n annuity. While 11 percent of plan partici no mo pants say th ney in plan ey would strongly favor rather t managin than Retirement from Revised Augus e a de xpecte hg Fidelity Investments an v fin the e d e d bene ry confi Confidence Slips Back accounts as th (35 perc t 2013. 5%fit pla d ent ent, i n (22 in n ough cluding reti perc rement, all o Benefit Programs ent). 13 f t percent H h only e om wever, t wer 348% 65 2saying much wo perce e %offers a straightforward, b a h single ose who 48% nt repot of port that re 48% port h Prudential Retirement rse) t mone they an aving han to y (2 asic exp don 7 descri d/or perc e lan a th ent ation of be it calculation eir spouses and as better t emplo 33 percen are 11% y cu ee b twic rrently h he an expected t). nef e as l Whil it programs in ave s e ikely 24u per- as ch a 0% $10,000 - 8%$24,999 9 161 76% 412 47% 9%8    8 47% (62 percent), needing mone 95% y to make ends meet (59 percent) 47% , or keeping health insurance or oth 14% er benefits (40 per- Figure 21 perc37, ent Co in mparison o 2013 (statistic f Exally unc pected (Work hanged ers Expectin from the 1g 9 to Retir percent meas e) and ured in Actual ( 20 Re 11 t13% iree and s) W 20o 12 rk f ). Co or Pay mbine in d with t he 0% 7% 22% 46% (or not contributing more 0% ) to the pla 7% n include: 45% 11% -5% 53% Retirement .................................................................................................................... 9% ...................... 8 excluding the value of th 2000eir 2001 primary hom 60% 2002 2003es and 2004 any 2005defi2006 ned be 2007 nefit 2008 plans, is less th 2009 2010 an $ 2011 25, 2012 000.14 2013 T %his includes 28 per- retirees indicate that -5% their current level 59% of debt is higher than it was five years ago. Just under 4 in 10 (39 percent) providing this type of information, 28 percent say th Workers ey h Re ave less tha tirees n $1,000. In total, 57 percent 0.09 report that age rolled the 62 throu mon ghout this ey into -10% -5% a time. 2000 plan 58% 2001 with t2002 the priv he sam 200at 3ee and fina 2004ncial public s 2005 instit e2006 ctors ution . 2007 The as tEBRI Data h2008 eir old r 10% 2009etirement book on Emplo 2010 2011 savings 2012 yee Benefits plan 2013 (14 perc is a ent) or statistical their the proposal and 35 pe 1993 rcent 1994 would 1995 1996 s1997 omew 1998hat 1999favor 2000 2001 it, 3 2002 0 p2003 ercent 2004 wo 2005 u2006 ld stron 2007 2008 gly o 2009ppose it, 2010 2011 and a 2012 2013n additional 16 per- those who have not -5% to say th 57% ey are very confident (31 percent vs. 14 percent) and considerably less likely to say they cent of work (21 percent). benefit with Retirement c er u Forty-two s and 15 perc rrent or .................................................................................................................... 1993 previ 40 perc %1994o ent of retir ent report t 1995 us employ 1996 1997ees ers. h 199 24% ei 8 with r experi 1999 multi 2000e2001 np ce has b le2 002 accounts say t 2003e 8% en 2004 ab 2005 ou2006 t th hey use 2007 e same 2008 a serv as th 2009 2010 ice or ey2 ex 011 we pe 2012bsite cte 2013 d. ..................... that allows them to 30 ? Cost of living and day-to-day expenses head -10% 4% the list of reasons why workers do not contribute (or contribute more) Despite cent). recent improvem -10% ents in certain economic indicators, American workers’ co 10% nfidence in their ability to 1% retire 15 percent of workers w -15% ho say they are not too confident, this means that just over a third (36 percent) lack 9% 4% 4% -15% 6% 1% referen 3%ce work o1% n employee ben 45% efit programs and work force-related issues. 3% 45% 0. 01 workers, but a cent who say t majority (58 hey hav -20% -15% e l $25,00 ess than percent) of 0 -$49,9 $1,090 90 ret in irees savings 9 , state t (u9p hfr at debt om 20 13 percent is not 11a pro in 20 blem 66% 09 for but statistically e them. 9 9 5%qui 0.01 valent to the FINRA Inve the total value stor Education Foundation of their household’s savings 4% and investmen The Segal Company ts, excluding th No e val t contu ributing; e of th   eir primary home and new retirement savings 75%43% plan 4% (4 perc 5% ent). 5% 43% Figure 4, Average Percentage of 0% Income that 4% 0%Workers Think They Need to 3%Save to Live Comfortably in Retirement, cent would somewhat -20% oppose the Don't kn pro ow3%  42 / p  % Re osal (Fi 2% fused42% gure 29). The 3%likelihood of opposing t42% he 2%proposal 3% 0% is higher among those compile are not In this y confident in ear’s form RCS, it ation a (11 -20% was b percent vs. 29 perc out fo 2%their und that r dif 46 f% erent etire ent). accounts in ment con 2% fiden a single ce decreases 2% place (sometimes referred to as the av 2% erage amount 1% as 1% 2% wor an “aggr 2% kers think t egatorh ”) t ey nee o hel dp ? to their employ Not being a -25% bleer’s plan, with 41 percent of to afford to give more 2% 1% (18 eligible w percent).o rkers citing this factor. comfortably, which seeme Yearly d to rebound very slightly in 201 1% 2, returne 1%d in 1% 20 1%13 to the record lows obse 1% 41%1% rved in 2011. Just confidence in their fina Yeancial rly preparations for retirem 40% ent (Figure 0% 0% 10). 40% 40% 0% -25% 22% Figure 38, Expected (Worker Yearly s Expecting to 39% Retire) and A 4% 39% ctual (Retir 39% ees) Sources ofdo In' ntcome in Retir  know if  ement ............ 31 -30% --25% 25% Yearly The d ifference between workers’ expected age of reti43 reme % nt and retirees38% ’ actual age of retirement suggests that a percentages measured Change in  in 249 010 % -2012). Approximately 1 in 10 each report totals of $25,000 -$49 37%,999 (9 percent), by Retireme Chant nge Confi  in dence and Age ........................................................................................................ 9 37% 37% Confidence in Entitlement Progra any define -30% d benefit plans, is less than ms $25,000. -35% -30% Change in -2% 24% 36% Few retir with at lee ast $ es who 100, have 00 Chan0 in ge innot assets. already worked for 41% pay in retirement anticipate returning to paid employment. Just 0.07 4 per- 1993 1994 1995 1996 1997 1998 1999 2000-3% 2001 2002 2003 2004 2005 2006 2007 2008 20mo 09ne 20y10  in 20 pla11 n 2012 2013 them vie to save incr w aen ad track t ses, particul Not Ath  Aleir l200 t arl 8 otal fi y for ol nancial der 200 wo s9ituation, t rkers, who h 201 e a ha 0 ctual ve less time to perce 201 n1 tages save. In doing so 201 fact, 2 may be workers a low 201e 3gr. e 45 or older who are -35% $50,000 -$99,999 11 -2% 6 -1% 9-2% 6 11 8 9 13 percent are very con Not At Alf lident they -2% will -2% hav -2% e enough --2% mon 2% ey to live comfortably 38% -2% in reti-rement 2% (statis -2% t-ically e 1% quivalent to -40% -35% Not At All -3% ? Already contributing the -pla 3%Contact EBRI n or legal ma -Publications, (2 3%ximum (10 per 02) 659-0670; cent). -3% fax publication orders to -3% (202) 775-6312. This level o Franklin Te f debt isNo strongly t Atmpleton  All relate -4%d to retirement confid -ence. J 8% uT. Rowe Pri st 3 percent of ce workers who describe their debt as a Target Setting 55% Much Higher A Little Higher About the Same A Little Lower Much Lower -1% considerable gap e -x 40%ists between workers’ -6% expectations and retirees’ actual experien -5% ce. Consider that -0. just 9 01 percent of Figure $50,000 39, -$ Wo 99,rker Con 999 - (10 45% -40% p fidenc ercent), e Th$1 at Soc 00,0i0 al 0 - Security $249,99Wi 9 (1 ll C 2 p ontinue ercent to ), an Provide d $250 Ben ,000 or efits more of at L 1% (1 east Equal 2 percent) (Fi -0.01Value g to ure 19). Planning by ? Debt may be Retirees another factor standing in the way; 55 percent of workers and 39 percent of retirees report -11% having a cent say it The reason t ? Retireme is v hat workers m ery likely nt sa --45% 45% vings may they a y be less lik will work be taking a for ely pay some time than back retir seat to more ees to in th expect to e f immediate uture, re and o ceive fina income nly ncial co 6 per from cncerns ent say it Social . Asked to is s Security is omewhat name the bec likel ause most y. Doubtl Figure 5, Retir not at a ess bec ll confiause they e dment ent -50% about Co are nfi ha dealready ving nce amon enou in retir gh g Workers, b money for ement, re y Assessed a c tirees omfortable tend to e Level of Deb ret xpr irement ess high t ...................................................... say th er lev at the els of pe confi rcent deage o nce tha f in ncome worke they rs 10 -45% Subscriptions to EBRI Issue Briefs are included as part of EBRI membership, or as part of a the 14 percent measured in 2012 and the 13 percent measured in 2011 and 2009), and 38 percent continue to say major problem are v -50%ery confident about having enough money to live comfortably throughout retirement, compared Benefits Received -55% -50% by Retirees Today .................................................................................................... 32 workers say th ? Orders/ Preferrin ey pla g to ni to nvest else retire before a where or ge not liki 60, com ng the pared pla with n or37 percent of retirees investments (8 percewho r nt). eport they retired that early, Retirees provide similar esti So Sou urr$100,0 ce: ce:     Em Em mates of tota pl ploye oye 00e e -   Be Be$249 ne nefi fitt  Re Re,999 sse ea arrl cch hhousehold sav   In Inssttiitt13 u utte e  an and d  Math Math13 ew ew  G Gings rreen eenw waall10 d d (Fi   & &  A Agsso sso ur cciie aatte e15 2 s, s,  0 In Incc). ..,,  1993 2002 - -2 212 013 013  Re Rettiirre em me e12 n ntt  Co Con nffiid den encc10 e e  Su Surr44 vvey ey %ss.. As noted earli problem with t er, many Sohuwork eir level of debt, and only half (50 perc rce:  Emers remain ployee Benefit Res u earn chaware of  Institute and Math how ew Gmu reenwcaent of workers and h ld the  & Assoyci nee ates, Ind c., to sa  2013 Retve ire52 percent of retirees) say they could m efno t r Co n afi f den ina ce Su nrcviey a.lly comfortable -55% -60% Virtually confidence Seven in all 10 retirees in say a ret Social S -55%u (69 perc e rn to curity paid ’s abi ent) in employme lity to ma $199 annual sub dicate 24% tnt is not intain t hey did some scription h too e valu likely (19 to type o e of EB bene RI Not f f perce inanci fits paid to es n and al pl t) or Eanni BRI Issue not retir ng for at a ees ll like Brie retirem is low. J fsly . Change of (71 eunt. st 5 peT rcent). hirty-fo perce Address: n t of ur perc wor EBRI, ent of kers about each pressing fi of these f nan inanc cial issue ial aspects o facing most Ameri f retirement, cans today, and the 201 bo 3 th RCS s workers an hows littl d retirees are e change from t most likely to he l0.e 05vels measur identify job ed for need to save each year to live comfortably in retirement is 43 percent on average (Figure 4). Additionally, those who 35% they are some Guardian Life Insurance what co -65% -60% So nfi urce: den   Employe t. Tw e Beenty-eigh nefit  Resea28% rch In t perc stitute an ent o d Mathew f w  Gro eerkers are nwald & AVanguard ssocianot tes, In at all c., 1993-2013 con  Reftide iremen ntt that  Confiden they ce Surveyw s. ill hav -3% e enough Use of Financial Advice Figure 6, Ability to Come -60% Up With $2,000 if an Unexpected Need Arose Within the Next Month ............................. 10 Expectations about Retireme 27% nt 27% 9% with 24 percent of workers who indicate debt is not a problem. On the other hand, 54 percent of workers with a major -65% So So So Sou u u urrrrce: ce: ce: ce:           Em Em Em Empl pl pl ploye oye oye oyee e e e    Be Be Be Bene ne ne nefi fi fi fitttt    Re Re Re Resssse e e ea a a arrrrcccch h h h    In In In Inssssttttiiiittttu u u utttte e e e    an an an and d d d    Math Math Math Mathew ew ew ew    G G G Grrrreen een een eenw w w waaaalllld d d d    & & & &    A A A Asso sso sso ssocccciiiiaaaatttte e e es, s, s, s,    In In In Incccc....,,,,    2000 2000 2013 1993- -  -Re 2 2 2013 013 013 tire    Re Re Re metttn iiirrrte e e m m m Coe e enn n nftttid    Co Co Co enn n ncfffeiiid d d  Su en en enrcccve e eey    Su Su Su . rrrvvvey ey eysss... -0.03 and that 14 percent -65% of Souwork rce:  Emers pla ployee Benefi n to t Re 7% sereti arc7% h In re at stitute and ages  Math 60 ew Gr -e64, enwaldwhi  & Ass le ocinearly a th ates, Inc., 2013 Reird (32 percent tirement Co 7% nfidence Surv) ey of r . etirees r -3% etired at 1100 13th St. NW, Suite 878, Washington, DC, 20005-4051, (202) 659-0670; fax number, 33 26 retirement. Less than hal definitely come up with $2,000 if an unexpe -65% f of workers (46 percent) r cte 6% ed need arose port they and/or within the next month. 6% their spouses have tried to ma 6%-ke that 0.063 calculation. Figure ? 40, Not n Rete iree Co eding t nfi o s den ave more ce That Soc (6 pial ercent Security ). Will Continue to Provide Benefits of at Least Equal Value to these retirees say they began to plan 20 years 5% or more 5% 5% befor 5%e th 5% ey re5% tired, 5% whi 5% le 32 percent report beginning to plan are very confi uncertai dent nty (30 percent that the Social S of workers and 27 ecurity system will percent of re continue to provi tirees) and de ben mak efits ing en of at ds least equ meet (12 perc al value ent e to the ach). Just retirees are not conf in the ident a recent bout t past. A heir fin fter ancial decreasin prosg pects in from 4 retir 8 perecment a ent in 2 re mo 007 tre like o 25 p ly to say ercent 4% in 2 they 009, 4%do the not k penrcenta ow how m ge ofu rcehtirees they Subscriptions $250,000 or more 12 12 12 12 41%17 15 17 money to live comfortably 3% 3% throughout their retirement years (up from 23 percent in last year’s RC 3% S, but statistically 40 debt These fin Twen pro ty-tb h d lem re ine gs are not p are simi ercent at al olar to f wl c orke o some other nfident rs and 28 about estimates of Am pe havin rcent o g fenou retire gh money er es re ican port th househ fore a yold assets. Qu have o financially btain sec ed antifia uinvestment re rebtireme le data advic nt from t , compare e from he 20 d 1 wi 0 th (202) 775-6312; e-mail: subscriptions@ebri.org Membership Information: Inquiries these ages. On the other hand, 26 percent of workers say they plan to wait at least until age 70 to retire 11 23 13 9 (compared Figure 7, Wor Sources of Retirement Benefits Received ker Confidencby Retirees Today e Income in Having Enough Money t ........................................................................................... o Pay for Basic Expenses in Retirement ............................ ......... 32 11 This is comparable to most of the percentages measured from 2003-2012, but lower than the 53 percent 43 recorded in 15% between benefits r 10 a eceiv ned d 19 years by retirees before retirem today, and on ent. Howev ly 24 percent er, 19 arperc e some ent sa why they at confdid not ident. On start plan the othe nin r ha g until nd, 41 five pe to ni rcenne years t of who ?ar e Paying off 2 percent very confident in h of workers and 4 percent mortgage aving enou or housingh g ex money penses of reto pay for tir(6 percent ees identi basi fy sa ). c e ving or xpenses has h planning eld for r steady st etireme atisti nt as t cally an he mo d is st pressing at 28 per- Retirement Age need to save. Furthermore, the amount th 19% at workers report they need to save each year is inversely related to 18% their 0.03 Workers equivalent plan to n the 27 perc ing to delay r ent measured etirement regarding gave in 2 EBRI 011 the fo ), whil membership an llowie 21 ng r e pe asons: rcd/or con ent are tributio not too confident they ns to EBRI-ERF should be dir will have eno ected ugh mo to EBRI ney. ? Worker confidence in the affordability of various aspects of retirement continues to decline. In particular, increases Survey of Consumer Finances (conducted by the U.S. Federal Reserve Board) found that the median (midpoint) level of 17 professional percent o fi f nancial workers adviso withors who ut a selwer f-ackn e paid t owledge hrough d deb fe tes or prob commissions. Those lem (Figure 5). with higher levels of financial assets Basic Expenses Versus Medical with Workers o 6 perc ften ent gu of r ess at ho etirees wh w much o actually they di wi d ll ne so), an ed to ac d 7 per cumulate (45 percent), cent of workers indicat rathe e thr than doin ey will never r g a e systematic, tire. Workers who 2000 (Figure 26). 1919 9194 1919 92919 593 1996 1994 1919 97951919 98 9619 1999 9720 1900 98 20 19909120 2000 022020 01032020 02020 420 0305 2004 2006 20052020 070620 2008 0720 2009 0820 201 09020 2010 1120 20 11122020 1213 2013 Figure Whil befor e th e ret 8, e maj Wor iremk o e er Conf rity of r nt, and idenc e12 percent tirees (93 e in Havin percent) report started less th g Enough Money t an that fiv S eo oyears before t Pay cial S for Me ecurity diprovides cal Ex hat poi penses i nt (Figure 28 a soun rce of incom Retirement ). e ......................... for their and their 12 Figure workers are n 41, financi Woo rker Con t at all al issue. con f idenc fident that e That Me President Dallas future Social dicare Will Salisbur Contin Securit y ue y at th benefits to Provide e above will address, ( Bene match or fits of 202) 659-0670; at exceed t Least Equal he va e-mail: lue o Vsalisbur alue to f today y@ebri.org Be ’s benefits nefits current cent in 2013. levels At the same time, the percentage not at of savings and investments. all confident ab 2out paying for basic expenses continues to be Worker This mea confi ns th dence at halin M f of all edi workers are care’s level oeith f benef er not its is also too or not a low (Me t ald l c icare onfi is the dent of h feder avin al gheal enou thgh care ins money f urance pro or retiremen gram for t, Many workers ? Other savin are ad gjusting s Sou priorities rce:  Emsome of t Wo ployere (5 k e Bers ne  percent). wi fit tReh hseir earch expectations a  Ins titute and Mathew Wo  Grb een rkou ewrsat r  ldwi  &e t  Ahtirement, perhaps ssociates, Inc., 2003-2013 ReWo ti in rermke enresponse to rts  Co  wi nftidhence Survey th s. e reduced level of are seen in the percentage of workers not at all confident about their ability to pay for basic expenses (16 percent, household are more like assets of t ly than th he Am ose with ericans lower having levels of these assets to assets was $ have gotte 21,500. n this advic 10% e, but it is unclear whether this is -5% are not confident about t 1993 h 1994 eir fin 1995 ancial 1996 1997 sec 1998 urity in 1999 2000 retir 2001ement 2002 2003 plan 2004 to r 2005e2006 tire 2007 later, o 2008 n 2009 average, 2010 2011 than 2012 2013 those who express retirement needs calc ? The poor economy (25 ulation. Eighteen percent indicat percent). ed they did their own estimate and another 18 percent asked a Confidence about other financial aspects of retirement reached record lows in 2013, continuing the decline from highs Received by Retirees Today ................................................................................................................. 33 spouse’s reti rement (70 percent say it is a major source of income), workers and their spouses continue to expect to Preparing (up from 34 percent for Retirement in 2012 but statistically equivalent to 39 percent in 2011) (Figure 39). statistically stable at 12 perc Hoent i usehonld 2  Inc 01 om 3 e(Figure 11).Ho usehold Income Household Income Furthe the elder r evi ly an den d ce of disable the d pot ). Siex percent ntially precar of w io ous state of rkers are v m ery any Amer confident ica th ns’ curr at the Medicar ent finanec system wi ial position is ll co that o ntinue nly ha to pro lf v ide Figure while ? ha 9, lf Debt Wor are may keither er Conf be somew So idenc another urce:   6% Em e hpl in at or v oye factor Havin e Benee fi standin try co  Re gs En earcnfident hough  Insg tit uin t te Money t  anin t dh  Math e way: hew ose  G or Pay een 55 pros waldper for Lon  & pects. O  Asso cent of work ciateg s, -term C In vcerall r ., 1994-2013 er e are E tireme s and 39 perc  Retirex mpenses i ennt conf t Confidencide n eent of retir  Su R rn ve ey ce ti s.rement among 0.01 ees ............. worker reports has 12 If those not c confidence up from 12 per abu out their rrently o ret cfent in 2011), medical expenses (29 percent, up from 24 pe fered a irement f plan inanc were es. Tw automatically enty-five enro perce lled nt of in a wor re 6% k tirement ers in t 6%h savi rcent in 2012), and long-term care e 20ngs plan 13 RCS say t at a h deferral e age at 20 rate o which they f 6 per- The percentage of retirees very confident that they had done a good job of preparing for retirement slipped from becaus The likeli e hi hood gherof do -asseing a r t individ etiuals rement savi feel a gre ngs nee ater nd eed s calcu for ilnve ation inc stment a rease dvice, because s with househ professional old i 4% ncome, a ed ducation, vice increase and s the Editorial Board: Dallas L. Salisbury, publisher; Stephen Blakely, editor. Any views expressed in this publication and those of the author s should confidence. financial advis or, while 8 percent use3% d an on-line ca 3% lculator and another 8 percent read or heard how much was <$35,000 $35,000-$74,999 $75,000+ More Pressing Concerns? recorded in 2007. In particular, the percen 2% tages of workers not at 2% all confident about v 2%arious aspec 2% ts of retirement piece ? together Lack of their faith retir in Social ement incom Security or gove e from a wide vari rnme0% nt (2 ety of sourc 0%1 perce 0% nt).e s. (Social Security is the federal program that 1% Figure Those finan Older workers 42, Ret cia ten iree Co l constraints n d -25% to Ye nfi areport rlydence o higher T twithstandin hat Me amoun dicag, i re ts of fWill those assets. S Contin notue curre eventy-five to Provide ntly offe percent o Bene red afits of plan f workers ages wer at Least Equal e automatic 25 V - all alue to 34 y enroll have Be total sa ed into nefits a vings (50 benefits o fluctuat perce not be ed ove having a ascribed to the officers, n f at t of least equal va r workers a the probl 23 years em wit nd lue to 52 of t trust h th perc h the ees, e eir ent o RCS, r lm ebenefits rec vel o emfb e ers, or retirees achin f debt. other sponsors of the E g its ) re e E ived m highest por phasizi by retir t they co leve ng th ees to ls in uld definit e m lack o ploye day, wh 200 e Benefit Research f7 even ely com (2 il7 e perc 24 percent a short-term eent very up with Institute, the EBRI Educ are so conf $ c2u,00 shion, on imewhat d0 ent if an and 1 un ly h confi ex 0 ation and alf percent pe d(5 ent cted 0 in per - Pol expect to icy Per retire s has c pectives h Soan urce: ged in t   Employee h Bee nefipast year, and of tho t Research Institute and Mathew Grs een e, wathe vast ld & Associate majority (88 s, Inc., 1991-2013 Retirper emencent) t Confiden report th ce Surveys. at their 15 expected 39 cent of perc pay, 4 ent expenses (39 p in 4 200 percent 7 to 26 ercent, up from 34 percent in 2012). say percent i they wo n uld co 2008, ntinue and has rema contributing ined statisticall at that ray uncha te, 11 perce nged n s t woul ince td hat tim increae s e it, an (23 perce d 24 nt in percent likelihood of building asset levels, or because those with more assets are better able to afford it. Figure financial asset 10, Worker Confidenc s. In addition, e married workers (compar in Doing a Good Job of Preparing ed with singl for Retirement e workers), ret .................................................. irement savers (compared with . 13 Change in need Saving for Retirement ed. 13% continue Confidence to i th ncrease a at Socialf Sec ter st urity wil abilizing th l conti e n past two years. ue to provide bene Sixteen fits th perce at are at nt of workers least equare no al to to w not day’s v atalue all co is hi nfid gher ent that among Similarly, the percentages Shaded o  area: f retir  Years ofe  da es very ta. confident about having enough money to -1% cover -1%medical expenses (24 per- provides income support for the elderly and disability coverage for eligible workers and their dependents). Resear Received by ch Fund, or their Retirees Today staffs. Nothing her .................................................................................................... ein is to be construed as an attempt to aid or hinder -2% the adoption of any pending legislation, ............. regulation, 34 Another reason that No retirem t At All ent confidence remains at historic lows may be that many Americans are preoccupied by ? Inadequate finances or can’t afford to retire (21 percent). the system. T need arose retirement sav and investmen wihirty-seven thin th ings ts of less th plan, e next most woul pan e month. Abo rcent ar $25,000, com d co e not u ntin t at all 2 in p ue th are 1confi 0 d e contr (2 with 0 de pe n 47 it that bution rcent o perce M ifn n e t of wor worke some dicarers and 17 ’s bene amount. At a kers age 45 a fits perc will conti ent of 3 percent nd older. nue retir to defa On the other hand, ees equal ) th ult deferral r ink th or exc ey ee pr d ate, th obably e Whil not at a e thll con e l cent of arge majority of savers are fid work ent), but er Sous and 52 rce: dro   Emppin ployee perc  g Be to nefit recor ent of  Reco searnfident chd   retir In lo stituws in teees   they and Math ) say th 2 are investin 011 ew Gr and 2 een ey cou wald & 0 Asso 1 g ld 3 th ci adef (Fi teei s, In g r retirem inite cure ., 2009 ly co 1). -2013  e me u Rent tire m sea p nving t  Co with nfids wisely, most en$2 ce Su ,000 rvey -5% s. if an un workers tend expected to One r would conti retireme eason fo nt a ng ue has e r this contri increase gap bet buting w dbut . T een his mea decr work ease t ers’ expectatio ns that i he amou n 201 nt. Si ns 3, an 22 xteen d r perc etirees’ perc ent o ent fexperi all work would ences canc ers pla of el t retirement a nned to he contr postpone th ibut ge is that ion altog -0.36 01 eir r many ether etir i efment 2013), those retirees not at all confident about having done a good -6% job stood at 15 percent in the 2013 RCS nonsavers), and participants in a Al -7% l of  defin it ed contributio Most of n  it plan (compare Som d with nonpartic e of it ipants) None of it more often report trying to workers a or interpretative ge 45 an rud ol le, or as der legal, than amon accounting, g you actuarial, o nger workers, r other such prof and essional advice. those already reti www.ebri. red ar org e more likely than current workers cent, match they will have ing enough mon the 24 -45% percent in ey to pay 2012) for basic ex and long-t penses erm care durin ex gpe re nse tirem s (e 1nt 6 pe (up from rcent, s 1 tatis 2 percent tically unc in 2 hanged from 011 but statistically 18 per- Figure Although 11, one Ret might iree Co ex nfidenc pect te h in at America Having Enough Money t n workers would respon o Pay for d to Basic Expenses in their lack of retir Retirement ement confi .......................... dence by improving 13 ? Just 23 percent of workers (and 28 percent of retirees) report they have obtained investment advice from a more imme Fee Disclosures diate financial concerns. Asked to name the most pressing financial issue facing most Americans today, both 42 19 perc percent r ent oe f port th workers a ey wo ge ul 45 an d conti d ol nue der the cit contribution e assets of $2 a50,0 s is, and 3 00 or mor 5 percent e (vs. woul 2 perc d ein ncrease it, t of workers alth ages ough25 7 perce -34). As nt one bene could come up be somewhat Those Not on fits ly is th who o r need arose eceiv b e (54 percent) r tained inv ed likeli with by wi hthe ben ood of thin th estment a $ efici 2,0having saved f ather th aries 00, but e next today dvice an v month. 3 in 1 di ( eu r d not 0 p from y o (28 (31 r retirem alw percent perc 2ays f 9 e ent) co per nt o each c am llo ent i w it, ong nfin o d 2 fent. Thi ho both workers and retirees) th 01we 2 workers and reti but statistically ver. T rty-four wenty per -seven cent of retirees equival rees strongly ink th perc ent ent ey to t of work pr r are very obably hee lated to 34 ers w perc or confi defi hous h ent o dnitely ent in ehold (Fi Figure gure 3 43, 3). Expected (Worker s Expecting to Retire) and Actual (Retirees) Spending in Retirement .......................... 17 34 Americans f Desp 6 percent (statistically u ?i te the agg Wanting to m of t ind h n th eir chan ressive saving emselves pay ged fro ake sure they was m deferr retirin 14 s targets put percent ed (Figur g u n have enough exp ie n e 24). ctedly. 2 forth -16% 012 ) (Figur b Th y many money to r e RC e 1 S ha , 29 percent 4 ). e s co tirensistently fo comforta of work bly un ers say (16 percent). d that a lar they ng eed e perc to s entage of ave less tha retir n ees do a calculation. While 77 percent of workers expect Social Security to be a major or minor source of income in retirement, they believe equival to be confiden ent to 13 perc t aboutent in 2012), the future val an ue o d afn S other 13 perc ocial Security ent bene are fits. Fourt not too confi een perc dent. ent Onoe-quarter f retirees say t (25 perc hey are very ent) of wo rkers cent in 2012) are stable. Additionally, the percentages not at all confident about medical expenses (15 percent in 2013 their preparations, that does not appear to be the case. The percentage of workers who reported they and/or their professional financial advisor who was paid through fees or commissions. Of these workers, 27 percent followed all of workers and retirees are most likely to identify job uncertainty (30 percent of workers and 27 percent of retirees). Figure 12, Ret EBR iree Co I Issunfidenc e Brief is r ee in gister Having Enough Money t ed in the U.S. Patent and Tradem o Pay ark Office. for Me IS dical Expenses in Retirement SN: 0887 ?137X/90 0887 ?137X/90 $ . ....................... 50+.50 14 201 could not (Figure 6). would conti Emp obtaine might sus 1) loyers that sp (Fi d a gpure d ect, n vic u 41). ee total savings contri say they onsor a retirement Th buti is fol ng perceive lo but and wed all decr investments increases s d i of ease t n savin abi it, lity to come g but mor hs pla e amou n ar ent. Ju e no disre up with h w re st g arp ard 11 $ quir ly ed some 2 perc with ,0 ed to 00 ent ho foprovide usehold incom of the ir an ndicate une a in they dxpec vice form ted would canc while ation a e, e nee d fo ucation, d b llowi is out t als el t nh g o he contr and e e most of strongly r xhealt penses ibut it h sta e (4 io la1 per- n ted to tus. they are income, th inv e esting t declineh in eir savin savings w g for retir isely, eme whnt over t ile 36 perc he ent past are somewhat few years is foun confi d dalmost ent (Figexclusively ure 21). Amon among those g workers, thi work sers leave the work force earli Source:e   r Emthan ployee Be plann nefit Rese ead rch(47 percent in  Institute and Mathew G 2013 reenwald)  & (F Asso igur ciates, e  In 36 c., 1993 ), a -2nd 013  man Retiremey nt retire  Confidenes who retired ce Surveys. earlier than $250,000 in total, while another 21 percent mention goals of $250,000 -$499,999. Twenty-two percent think they need ? Perhaps not s -65% urprisingly, worker confidence in the affordability of various aspects of retirem -0.e 03nt continues to ? A change in employment situation (13 percent). that personal savings wi Sourll a ce:  Em lso play a ployee Benefit lar  Reseg are ch role.  Institute an Roughly d Mathew Grtwo-thir eenwald & Asso ds eac ciates, Inh c. say they , 2013 Retireme ant nt Confiicipate rec dence Survey. eiving retirement confident about the future value of Social Security benefits (Figure 40). and are no 16w very percen confident t in 2012) a abo nd long-term ut their ability car to pay e expefor nses (3 basic 4 pe ex penses rcent in (down 2013 an from d 30 40 pe perce rcent i nt in n 201 200 2) do 7, but statistic not show ally any spouses had saved for retirement increased briefly in 2009 (to 75 percent), but this percentage has slowly declined and the advice, but more disregarded some of it and followed most (41 percent) or some (27 percent). altogether. Additionally, workers who have done a retirement savings needs calculation tend to have higher levels of savings lack of confidence connecte with househol confi d inc wit ded in h reases wit n the ce i comes un various n a financ h ho d in e usehold assets and incom ially comforta vestment o r $35,000. B pte ble ions off twee retirem n e 20 re09 d ee. nt w and . ithin t 2013, he the plan perc and t enta he ge o amou f workers nts deducte with d fhousehold rom partic inc ipan omes t planned cite negative reasons for doing so, including health problems or disabilities (55 percent), changes at 2 their Figure 13, decli Ret nie. I ree Co n par nfidenc ticular, i e in Ha ncreas ving Enough Money t es are seen in the perc o Pay enta for Long-T ge of workers erm Care Expenses in Retirement not at all confident about th ei .......... r ability to 14 income from an employer-sponsored retirement savings plan (72 percent), an individual retirement account 30 or IRA Other equival issues n ent to tamed inclu he 26 percent measured de: in 2012) (Figure 7). statistically meanin ? The cost of gfu livi l ch ng i an r nges etireme (Figur nt wi es 12 a ll be n hi d 1 gh 3). er tha n expected (8 percent). now stands at 66 percent. The percentage of workers having saved for retirement increased from 1998 thro ugh 2000, © 2013, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. ebr ebr ebr ebri.org ebr ebri.org ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr A ebr ebr ebr ebri.org ebr ebr ebr ebr ebr ebr ebr ebr ebr research i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.o i.org rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg rg Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Issue Bri Issue Bri Issue Bri su su su su su su su su su su su su su su su su su su su su su su su su su su su su su su surep e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e B e Bort ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri rie e e e e e e e e e e e e e e e e e e e e e e e e e e e e e ee e e fffffffffffffffffffffffffffffff • M • M • M from fff • • • • • • • • • • • • • • • • • • • • • • • • • • • • • March 2013 • March 2013 • March 2013 M M M M M M M M M M M M M M M M M M M M M M M M M M M Ma a a a a a a a a a a a a a a a a a a a a a a a a a a a a a athe r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r rc c c c c c c c c c c c c c c c c c c c c c c c c c c c c c ch h h h h h h h h h h h h h h h h h h h h h h h h h h h h h h 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 EBRI 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 12 13 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Education N N N N N • No. 384 • No. 384 • No. 384 N N N N N N N N N N N N N N N N N N N N N N N N N No o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 384 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 384 384 384 384 384 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 84 and Research Fund © 2013 Employee Benefit Research Institute 5 12 30 11 8 25 35 9 17 2 3 4 29 10 32 33 24 18 19 27 31 23 22 26 15 20 6 14 13 16 34 28 7 21

Volume 384

Pages 36

EBRI Issue Brief

Ruth Helman

Nevin Adams

Craig Copeland

Jack VanDerhei

Retirement