Americans’ confidence in their ability to afford a comfortable retirement has recovered somewhat from the record lows of the past five years, according to EBRI’s 24th annual Retirement Confidence Survey (RCS), but it does not appear to be founded on improved retirement preparations—and it may be limited to those with retirement plans.

• The percentage of workers confident about having enough money for a comfortable retirement, at record lows between 2009 and 2013, increased in 2014. Eighteen percent are now very confident (up from 13 percent in 2013), while 37 percent are somewhat confident. Twenty-four percent are not at all confident (statistically unchanged from 28 percent in 2013).
• This increased confidence is observed almost exclusively among those with higher household income, but it was also found that confidence was strongly correlated with household participation in a retirement plan (including an individual retirement account (IRA)). Nearly half of workers without a retirement plan were not at all confident about their financial security in retirement, compared with only about 1 in 10 with a plan.
• Retiree confidence in having a financially secure retirement, which historically tends to exceed worker confidence levels, has also increased, with 28 percent very confident (up from 18 percent in 2013) and 17 percent not at all confident (statistically unchanged from 14 percent in 2013).
• Fifty-eight percent of workers and 44 percent of retirees report having a problem with their level of debt. Furthermore, 24 percent of workers and 17 percent of retirees indicate that their current level of debt is higher than it was five years ago.
• Worker confidence in the affordability of various aspects of retirement has also rebounded. In particular, the percentage of workers very confident in their ability to pay for basic expenses has increased (29 percent, up from 25 percent in 2013). In addition, there have been decreases in the percentages of workers reporting they are not at all confident about their ability to pay for medical expenses (24 percent, down from 29 percent in 2013) and long-term care expenses (32 percent, down from 39 percent in 2013).
• Sixty-four percent of workers report they or their spouse have saved for retirement (statistically equivalent to 66 percent in 2013), although nearly 8 in 10 (79 percent) full-time workers say that they or their spouse have done so. Here again, participation in a retirement plan mattered: 90 percent of workers participating in a retirement plan had saved for retirement, compared with just 1 in 5 of those without a retirement plan.
• A sizable percentage of workers report they have virtually no savings and investments. Among RCS workers providing this type of information, 36 percent say they have less than $1,000 (up from 28 percent in 2013), although those who indicate they and their spouse do not have a retirement plan (either an IRA, defined contribution, or defined benefit plan) are far more likely than those who have a plan to be in this group (73 percent vs. 11 percent). Moreover, 68 percent with household income of less than $35,000 a year have savings of less than $1,000. Of those who have saved for retirement, only 38 percent report savings of less than $25,000.
• Cost of living and day-to-day expenses head the list of reasons why workers do not save (or save more) for retirement, with 53 percent of workers citing this factor.

Figure 21 Figure 15, Workers Currently Saving Mon Approx much estimate likely other they Table of Contents retirees Endnotes in Use of Financial Advice Seventy-nine the Older 2013 benefits n ? to ha workers mon eimately ed Fifty-ei but are say nd, foe to un y r no 22 th re s e tperce d covered ave h ey ceived ght t ten 1 percent ey it at in are very deac per will all n 10 to t not by con cent of h report each nee (36 to of year cur retir fat 22 ident d workers percent of rent r all t percent ees e o is higher work port have con inve abo workers today ) er ftotals plan ident u rsely or s amoun saved t this havi and somewhat (t to re ho a of e year. ey for Retirement b n x 44 wait lated so ts ugh pect out g $2 done perc of that 5,0 However, th at that’s Social to assets. 00– eir (49 ent least they curr a fina g $4 percen of up ood S e9, u cEi e n ncia retir an n the f curity 999 t ghty r tjob om il leve ...................................................................... live t l a e perc )sec g (9 es (statistically 5 use percent ls e to comfor perc perc report u 70 enta of rity f be ul saving to ent en a (Fi ge i n retire tably o major t), havi g fretir not in ur work $unc a 20 e 50, ng n ie at (com n 2 d or 13 ment 3 han ers 000 ret a al inves ). ), mi probl l ipar A re g co age a –$ n ed (11 nd more o ment. tm nfident, 99,9 e r e d from 25– source 24 m ents. perc with 9 wit in p 34 9 This e -depth ent the rcent (9 h Furt whic 9 have o their perc fper is wit 1 iher, 5 n h c ar come c o analysis h to percent rose ent ent), lmparabl e e a tal those vel somew plan of ................... 15 savings from in o $retir f100, retir who of without vs. debt. e hat 12 to thi e00 46 e es an ment, s most per- 0– who per- d a The 2014 Retirement Confidence Survey: Confidence Figu Figure re  42 41 Fi Fi Figgu guurre re e   24 36 30 Figur Figur Figure e e   6 1 8 Figure 27 Total Savings and InveFigur stm Figuere ents  13  4 Reported by Workers Ruth Helman is research director for Greenwald & AssocFigur Fiiat gu es. re e  Nevin 31 34 Adams is director of Education and External investments expr cent of actually aspect but c confident. retireme $24 e n th t9,9 th essed e iw n ey pe i99 of t2 Furthermore, h did nt 0 rce beli oth 0 (1 u Nev tpla 8 ha t e so n 1 eve o t a tag Retireme o ftn perce ). e p less sentiment rtheless, 21 (wh le As that an s p ) measu on nt), th e e(F ther person rcent 24 an e nt ig and mi u perc 35 $2 Co an r in rght e ed i 5,00 n perce nfidence al $25 201 3 IRA, ent 2 ) fex savings r . 013, om 0, 0,0 3) pect, on def fcom t (Fi 00 20 workers hol of ine Su g 03 wor or p wil ure wor drar d –2 s vmore le ed at contributio kalso k 0 11). y ers ers 1 an 20 cwith 3 a,d n who (11 play are th p17 b e ou 4 e rcent p 8 not percent are fa e g n o per rc h la , un Figur a ent) o low rnot ig c t d n r en e all de in this e ro conf t of (Fi r e fin co the of le. t  15 h r g y e nfi e an ure ide e work d tire Roughly Ma ar’s d be n ent t h r 1 es t c ne er e 7 R about h ). C that 53 indicat s fit) 20 S. Retir age two percent 1on Combi 4 fut th 45 -ees EBRI e a thir eir u that re house an ne fin ds pr So recorded d N d ovide ancial their say o older. cial with tes, hold they Scu simil e “How sec the level At curity rrent in ant u the ar 2000 1 rity 3 are Woul ie ci lbenef p e s s in pate e ame vel timates more rcent (Fi r d e of g iDef tirem ts time, ure re debt of like ceivi wi ine (F 26). ll work e igu l16 nt d y ma n is th g rplan h per- e tch ers an igh 18 er or ). to Ninet Introductio een perc n.................................................................................................................. ent of workers and 25 percent of retirees report they have obtained investment ...................................... advice from a 5   Worker Confidence That Medicare Will Continue to Provide  Figure 16, Years Saved for RetLik ire Retirement, by Age and Ret eely  Con  Refsp idence onse  ifTha  Not  Lon Socigal ier rement Status  Se  Abcu ler ito ty  Con Will ........................................................... t ribut Conteinue  to Em  to pProvi loyerd  e  ............ 15 PerceiveRea d Va solu nes  fo ofr  Withdr  Workinagw  in al  Ret Recioremmmeentn,d  ations,  Rebounds—for Those With Retirement Plans Wo Wo Retrrirk kee eerr   Co Co Conf nf nfiiid d den en encccee e   in in in   Ha Ha Having ving ving   En Enoug Enoouugghh h   Mon Mon Monee eyyy   to to to 1 Amount of Savings Workers Think They Need for Retirement AmonWo g Those rkers  Pr Haovidin ving Sa g av eRde sp Mo on nse, ey  fo byr  Pla Retnire  Own ment ership Retirement Confidence Among Workers, by Assessed Level of Debt cent Contributio who retireme Relations retire e those These xceed say of later, wit fin work th than nt th d h e at in ey n a inc valu o gs th er it P plan nome are articipants e s was average, are e age Employe of not to from simi fiv tod 45 t hink too e lar a an years an th y’ e Re co d tto s an B h employer act nfident, b e older ey some e nef those an g ne to eo, Wo ift ied cite ts Lif R while other who eor e ( -spo to searc k d n time asse e ow e-t sa rexpress 3 estimates nsored sn hird ve 5  h ts Expecting Income fperc Institute rat of om (33 l$2 e e rconfiden 4 ast e n50 1 perc tire t Illus of pe an ,0 5(EB ment Am 0  00 e rce d to tr n perce 25 ations? R t) er  ce. n or Re I). t ican ind savin perc in more tir Cr n i20 t caig e househ ate ent of Evide g  13 La s (vs. the Copeland plan ) titn her (dicat ey n iF lr old ce e ig   than income ss (71 lack ufrom re assets: than e th perc 40 is co  Pl at senior the ) nfi (23 1 anned .ent), their per d Qu 2 ence perce 014 antifia c research curr a ent n in Ret n IRA en of t tbheir vs. ile t reme work (65 level data associate 8 fi perce nancial er percent nt of s from Conf age debt nt) at ide ) pr t25 h , an is e epar an EBRI. n –3 d lower 20 ce d 4). t 1 o ations oth 0 say Jack e than r In the RCS, retiree refers to individuals WorkTim ewho rs ing Cu are r rof ent retired  Ret ly iSa ror em vi who negn t ar Mo , e Am age neong y 6 5fo or  Rr eRet older tirees ire and me not ntemployed full time. Worker professional financial advisor who was paid through fees or commissions. Those with higher levels of financial assets Benefits of at Least Equal Value to Benefits Received Today Ret Bene iremfits ent  of  Sa  at vin  Least gs Pl an Equa  onl Pr  Vaeltuaex  to Bas  Ben is, Amo efitsn  Rec g Plan eived  Pa rTo ticdiapyants Retirement Confidence ............................................................................................................................... Among ReAmong tirees Who  Plan  Wo  Parrtkie cidp ainn tRet s irement .......... 6   Figure 17, Total Savings and Investments LiveTa  (nCom Ta okt e inc k eCa fludin ort  Ca Reported by re gar  va  ebly of l uof  eMed   ofThr  Basic  primar oicug Workers Amo al  yExpe  rehout  Ex sidepe nce nse  The ns  ors  e de  sir in ng Those Pro fined  in   Re Re  Ret  ben ttiirreee ifitrm m e  plan m eenn ve s)t iding a Resp tnt  Years onse ...................... 16 By VanD Ruth erhei Helman, is the research Mathew director Green at EBRI wald . This & Issue Assoc Brief iates; was written and Nevin with assistance Adams, from J.D.the ; Craig Institute’ Cos pela research nd, Survey,” for they personal Survey retir doof e it not ment onlin savin was Con kne s g five ow compared umer s at an ho ww years d w Financ inv w.e mu estments ago. wit bch rie.org h s they two (con -nee (68 thir ducte d ds per to dwho cent). by save the are (30 Seventy-fo Federal confiden percent Re t ur (22 serve vs. pe18 percent rcent Boar per exp cent). d) very fou ect n con em d that ploy fiden the ment t and median to 44 provi percent (midpoi de thsomewh em nt) with level at a of refers to all individuals who are not defined as retirees, regardless Figur Figuree  26  3 of employment status. are more likely than those with lower levels of assets to Fihave gure gotte  10 n this advice, but it is unclear whether this is Currently, employer-sponsored retirement savings plans, such as a 401(k), allow you to contribute to the plan without paying federal  March 2014 • No. 397 Overall Retirement Do How Ho In Confidence   to w yo   much ta co u lnow ,n  ab fid  o do e  u ex nt  tyo  p  how ................................................................................................. ar euce  tth   yo  to muc ink u  re  th  h yo ti are money ut   the la (an te  dMe r,    wo yo atd  uuan icrla d  spouse)  r  ol yo e der sy u st sa  ag ey  m will  eyo   wil th u  need  a(a l nco n  be dn   to tfyo ion  raccumula u uee r?   spouse  to (2 014 provide  t)Wo e  cu  inr  r ben krto en erta stle  ln yf iby  =tha s1   ,of th v000) e  eat  in  tim    le saas evi  tyo ng  equal us  and ret ire     ......................... 6   No Ar Ov Ov Did Ho Ov Ov Is… How teer er er er  w including    yo yo a  all, all, all, all,  co  va ma u un       lu re how how how how (and/ fjor iadtbiere  lre  n     eSo co co co co  o t  edo a  rar ca n n n n s  yo iorlier ffff al eiiiiyo nd d d d   uyo ,Se e e e e  urmi n n n n    tha u spous cth tttt    u  no ar ar ar ar tha ink rnie e e etr y  yo     t  re yo yo yo yo  e  yo ta the )u a  u u u uu xcurr s  p     eo   tha tha tha tha wo So lsnanned,  ,or en  cttttuor i     lal yo yo yo yo em tly d  not   Security u u u u fin   sa ploy     la (and w (and w  daving till ill  e  rre e   rer ha ha    ctha ayo yo  o - fo spr vvsy mm ou ue ernno srr    enough enough re  t    vyo spou spou wh eenda id tm iuere y   dwill p  yo m se) se)  ltmo anned, i  eoumo mo    cnt ns w w  wo o n?ill ill n e  n nas   yt  e e 2riha ha (,knue  yy  2014  or ha to e   to to vvd   e evabou ho     fo   eto ta ta eno eno   Wo yo w rkk   pr pa e e  muc tuu u    o rca ca  whe yggk(and/ v  h h ere re aft id r   hmo mo se    n  of of eyo  n= be  royo   n n  yo yo u yo r1,000, e en   u yo ca yye u uu    plan fits to to rr  u nre   ba me r    w  lilit  sp  iof p vvsic ined? re tdi e eer hdr o    d at  cucen e?al s  x  leas aw e   (  pe 2014 ()t2    nses ye 014 fr t os m )     As one might suspect, total savings and investments also increase sharply with education, health status, and household income taxes on those contributions until you withdraw money from the plan, when it is taxed as income. If this were flipped, such  Figure 18, Total Savings and Investments Reported by Retirees Among Those Providing a Response ...................... 16 and source household confident Ph.D editor .; ofa )inco ial n (Fi assets d s gm tJack ure affs. e in of 12 Any retir tVanDe ). he e Am vim ew e ericans nt, s rhei, ex an pressed d h P56 aving h.D percent in ., these this EBRI ex report assets pect are to was receiv those $21,5 e of i00. nco the me aut from hors an and em shou ployer-s ld not ponsored be ascribed traditio to n th ae l because higher-asset individRe uals Wo tir rfe ekm el ere a sn  Ha gre t Co vi ater nnfgin  d Tr eed en ie cd for e  to   by inves  Cal  Ret c tment uirlaetm ea eHow dn vice, t Pl  Mu an have  Owne ch bet  Mo ter rnsacce hip, ey  ss   to professional advisors, Retiree Confidence in Having Enough Money  va invlueest  to me  th ntes ,bene  not inc fitsl uding receiv  th ede  by  va lre ueti re ofe  yo s to urda  pryimar ? (20y1  r4e sidenc Workeer s[or  plan  vaning lue of  to  de  refined tire n  ben =911) efit plans]?  yo R so the u at titha r  ryo  ees pl uta r  yo  cont n  wh  u each  rca o ibu  ha n t i ons mo liv ve  e we  nwo  co trhe  rm ta to kxe ef od hel dr   now ta fopb r   yo lpa but y in uy  yo r   n  re usa =  dit149) vi idr ngs e not m  ha e  la nvste?t  to   t( hr 2014 payoaug ddi  Wo hout tiona rkl   e ta yo rxe su  sn  ron  =re 1,000)  thtiore sem  coe ntnritbut ? (io2014 ns and  Wo  assorckiaeted rs  ear whno ing   s  ? Nevertheless, pe e during co co equal Re x many rpense m m stiore ffno o  e ava rr  yo ttlsly a a  sln= ub b workers   uduring sa ellryy501)   to v   re thr thr e tdth ire o o  an  yo eug ug m  bene yuhou hou e  appear mo rnt  re?ttfits nt    (yo yo iere 2014 y  u u  rm fo ece rr   ere re rto  nt  Rre iv tteii?re re ed ttir be  i(r2014 m m eees  by m e eaware nt nt e   re n= n    Wo tye ye t?i501) re   a arTh rrekssse?? of e  r  to ss(2014 e  n= d t  sa h ay1,0 e vin ?  Wo (n 00) 2014 gesr  ed co ke u rRe slto d  n= t  include ire 1,000 bolster es n=) mo 501) their ney you savings  personally if  pu they t into want   to enjoy a 2 Figure 39 income. More than two-thirds (68 percent) of those who Figur report e 33 having less than $1,000 in savings have household Bricker, Jesse, Arthur B. Kennickell, Kevin B. Moore, and John Sabelhaus. “Changes in U.S. Family Finances from 2007 to Confidence in Other once Fina  theyncia  have be l eAspects n held in the ploan f  fo Retirement r five years, how wou ........................................................................... ld this likely change your contribution to your plan? Would you… (2014  ............... 8   officers, Where the world turns for the facts trustees, or other sponsors of EBRI, Employee Benef on U.S. employee benefits. it Research Institute-Education and Research Fund (EBRI- pension or cash balance plan. In contrast to workers, rFigu etirees re  20 are less likely to expect to rely on any form of personal a co rent tire rib muete nt  mone  plan at y to  wo  an rk  em . (2014 ploy eWo r-sponsor rkers n=e1,00 dFi  plgure an 0,  per n=414)  c23 ent yes) because Figure 19, Percentage of Ho professional advice usehold Inco increases the me That Workers Think They Need to Sav liAm kelihood ong of Wo build rkeir nsg : asset 2013–2 levels, 014or becae to Live Comf use those withortably in more assets are The Very y Need Somew  to hat Save fo Nor t Too  a Comfort Not Ata  Alble l  RetDoir ne 't Knme ow/Rn eft used Very Somewhto at  Pay fo Notr  Too  Long-Te Nortm  At Al  Ca l re Don't Know/Refused Workers who conVe trirbut y e mo Eane rliye  to r So Th  anmew an  emp  Pl hlat oann yer-espdonsoreNo d pltAb  aToo n out n=414)  When PNo lanne t At dAll LateDo r Th n't aKn n oPl wa/Rnef ne ud sed comfortable retirement. Work Twenty-two Veers ry  w/majoSo r de m epe b wth apr rc t ob ent lemsay  (n No=t166  Too they ) need Wor Noktto ers  At  All  save w/mino bet r de Do w b nee t't  pro Kno n wb/20 le Refm usa  e(n n d=d 363) 29 percent of their income Very Somewhat NoFi t Too gure 17Not At All Don't Know/Refused IRA (n=509) DC Plan (n=598) IRA + DC Plan (n=417) DB Plan (n=365) No retirement plan (n=241) Expectations About Retirement Health Care Expenses income of $35,000 a year or less. Trend in Ret Majoirr  reeae sos n’ Actual Ret Minoir rreeam sonent Age 2010: Evidence from the Survey of Consume 25% r Finances,” Federal Reserve Bulletin, Vol. 98, no. 2 (June 2012): 1-80. savings ERF), or or thon eir employment staffs. Neither fo EBRI r theirnor incom EBRe I-ERF in retir lobbies emen tor (Figure takes 38 positions ). on specific policy proposals. EBRI invites Workers ....................................................................................................................... ............................... 8   better able to afford Ave it. rage Percentage of Income Workers Think They Need to Save to  Retirement .................................................................................................................... Usefulness of 24%  DoL* Lifetime Income Calculator  .................................... 17 Overall, how confident are youResp  thato  yo ndent u20  will 45 05%  have enoug 20 Respo 12h mone ndent 20 y  to an 13  pa d/or y fo  Sp r 20 loonu14 gs-eterm care, such as nursing  Overall, 34%  howWor  conkfiers den  w/ t arneo  yo  debt u tha  probl t you (an emd  (n=  you4r 6sp5o)use) will have enough money 55% to live comfortably throughout  and another 2Ha 2 vp e e yo rcent u (or yo inudi r spous cate eth ) tried ey  ne to fig edu rto e out sa  ho vew 3  mu 0 p che  mo rcent ney  yo or u mor will need e.  to have saved by the  Total Savings and Investments Reported by Workers 43% Introduction 53% 11% Figure 12 hom 32%e or home heal 2%  th care, should yo 9% u   need it during your retirement?  52% 52% 52% 52% comment Retirement on this research. and health benefits are at the heart of w 73% orkers’, employers’, and our nation’s your retirem8% ent    years? 14%   22% How much do you think you will need in total for health care costs in retire51% ment?  Please include11%  the  Litim vee   yo Co u m retf ireo r sotab  thatl y yo  in u ca En  Ret n joyin  livegi   r wo coem rm 7% kfinoge rtanbtly,   inby  re tRe iremt 54% eirnte?m   (2014 ent  Wo  Con rkerfsidence  n28% =1,000, per  and 83cen %  tAg  yes)e Estimate Among Those Providing 50%  Information 50% Retirees ...................................................................................................................... (2014 Retirees n=501) .............................. 10  21% 21% Workers Figure 20, Av who erage Percent have done a re age of Income Workers Think They Need t tirement savi St49% ongs p contri nbuting eeds  al cal togecth ulation er (compare o Save to Live 10% d   with those Comfortably in Retirement, 49% who have no49% t) also tend to have th 29% 5% 48% 78% 7% 48%    48% 48% 17% 14%   Among Tho 17%s   e Providing65%  a Response The 2014 Retirement Work 28% er Confi Confidence Survey: Confidence denc 13% e   in Prepar 20% ing Financia 14%lly     for Retirement economic security money yo . Fo u migh unded in 1978, EBRI is t pay for health insur64% ance and Med 47% ithe most authoritative and objective source of 64% care premiums, co-pay22% s, me    47% dications, long-te 47% rm  Those The 24 ? who Aggres wave obtained s of ive th as e inv Retir thos estment e e ment targ11% ets a Con dvice appe fiden diar d ce not toSurv be, alw ey they ays (RC fmay o S) llofin w not d it, s be ho that we bas A ver. m ed ericans’ on Tw a enty caref conf -seven ul idenc anperc alys e in is ent th of eir of in divi work abildual ity ers to w ah ffo o rd a 75% 46% 1991 1999 26Figur % 2004 e 38 2009 2013 2014 Ve62% ry Some45% 62% what Not Too Not At All 6%  Do 26% n't Kn 49% ow/Refused 8% 61% 61% 73% 22%   24% 72% 72% 29% 24% 21%   71% 60% 60% Ab How ou tuse  wha fultWa   is pe  nitrtin  cen tog(n   hear to taot  ge st  ian   an yof cl  ac  udi  yo es tivti ung erma  and  53%  to vatta e  lin u  lof e v  ho o   of lth vusehold e  prim ed mon arty  hl inc  rye om si redence te ire  do m 56%   eyo or nt  ud  in  ethink fine come d  yo   bene yo u u(and  migh fit pl  yo 23% ans t uex r )pspou ect fr se) om  need  you rto     high Prepar er ing leby Retirement vels for o Retirement f savings. Confidence a ...................................................................................................... In addition, nd Age those who .............................................................................................. have saved for retirem 70% ent are 59% more likely 79% than .............................. those wh ................... 18 o have not 12  care costs, and other out-of-pocket 69%  expenses. 69% 69% 38% 58% 58% 68% 68% information on these critical, complex issues. 19%   57% 57% obtaine C comfortabl opyright Inf d circumstances ad e vic ree tirement ormation: say they . Only has fol r This l44 o ewed boun per reall port c de ent d ofs is re it, omewhat copyright port but tmor he y from e e and/or d only by the the follo tre heir Em co we rd spouse ploye d mos lows et Be of have (3nef 6 thperc e itt ried past Rent ese to fi )arch ve calc or years. some Institut ulate (29 However, ho e w (EBRI percent muc) h this . )money It . R may incr etire e they be ased es are 66% 66% 66% Rebounds—for Those With Retirement Plans 19%   sa plvan? e each  Wo uye lda  yo r fruom  say  now  that  un it is til…  yo 11% u expect to retire so you can live comfortably throughout your  64% Expected (Workers Expecting to Retire) and  In total, about how much money would you say yo 22u%  (and your spouse) currently have in savings and investments,  74% 19%41%   18% 20%   45% Do 45% n't Know/Refused Overall, how confide 41% nt are you that you are doing a good job of pr18 eparin %   g financially for your  saved to have substantial levels 21%of savin 21% g21% s48% . The large m 40% ajori 21% ty (73 percent) of those who indicate they and their spouse Reduce the amount you contribute 1 10%11% 47% 15% 43% 20% 43% Figure 21, Total Savings Planning by Workers ........................................................................................................... and Investments Wanting mo Reported by ney to buy extras Workers Amo 26% ng Those Pro 28% 54% viding a Response, by Plan ........................... 12  retirement?  Less than $25,000 in total 46% 46% more used level o without likely f will confi to nee d permission ence report d to does hfollo ave not inc not bu win saved ludt ing g appear citation  the all by   va of lu t h ethe to  of e of 42%  yo tim be 68% tadvice h ure  e founded prima source th 42%ey ry(38  rerse i de is on tire percen ncre eim  68% (or so quire proved  vatt) lh ueat d (Figure  of .  tde hretir fey inedcan  29). e bement ne flive it  pla preparat ncso )?mfortably  (2014 42%  Wo iorns. kersin  n= In 783 retireme th ) e aggregate, nt, a level work that erhas 14% 24% 51% 67% 22%   41% 36% 38% retirement? (266% 014 Workers n=1,000) 44% 22%   26% 40% 22%   Actual18%  (Reti18% r17% ee 36% 65% 40% 18% s)    Sources of Inco 40m % e in Re 40% tirement 44% 45% 44% 37% 37% 44% 19 18% % 39% 39%43% 44 39%% 43% do By not Ruth have He a lman, retiremeGreenwald nt plan (I36 RA, % defi & As nesociates; d contributioand n, or Nevin defined Adams, benefit) say J.D., their Craig assets Cope total le land, ss than Ph.D., $1,000and , 41%   38% 46% 38% EBRI focuses solely on employee benefits research — no lobb 16%   42% 42% 42% ying 42%or advocacy 42% . 60% 45% 18%   Ownership ..................................................................................................................... 37% 37% 37% ................................... 19 savings EBRheld I E remai mploye relat n low, e B ively ene an fit R consistent d e on se35 la y% rc a h Iminor n 35ove stit % ut 59% r e I ity the ssa ue B 35% ppea past riefr dec (IS to S ade. be N 08 ta 87 king ?137basic X) is puste blisp hs ed m to ont prepare hly by the E for m retir ploy Not at e ee B  ment. All Co en nfiefit den On t Res th ear e ch ot In her stitut hand, e, Savings and Investments........................................................................................................ 58% $25,000 to less than $50 36% ,000 35% 42% ........................ 15  Needing mo 42n %ey to ma 27% ke    ends meet40% 25% 26% 52% 2014  2014  57% 18% 38% Very 29% Somewhat Not Too Not At All 19% Don't Know/Refused 45% 30% 31% 33% Ver 33% y useful 36% 38%   compared with 11 percent of those who have a plan.38% Converse27% ly, those without a retirement 35% plan are far less likely than Jack 110 VanDerhei, 0 13th S EBRI t. NW, S stand uite Ph.D., 8s 78, alone in em WaEBRI shington, Dpl Coyee , 20005ben -4051, efits at $3 rese 00 per ar ych ear or i as san inclinde uded as pend part eof nt, a m nonprofit, and no embership subscription. npa P rtisan eriodi- Recommended Citation: Ruth Contin Heue lman,  to contNevin ribute32%  what 32 Adams, %  you do now Craig Copeland, and Jack VanDerh Has ei, “T Nohe   2014 Retirement 65% Major Unde  soFi r urce 45gure 29 Mi 45 n oro  ol r so deurc r e32%19% there are notable differences between the behaviors—and confidence—of those wh11% o indicate they or their spouse have 43%   48% Figure 22, Extent to Which DoL Lifetime I 38% ncome Calculator Estimate 38% Matches Expected Level of Income Among $50,000 to less than 39 $10 % 0,000 10% 10% 10%10% Retirement cals postage Plans rate pai .............................................................................................................. d in Washington, DC, and additional m 41% ail   ing offices. POSTMAS 22 29%% TER: Send address cha Renge t. s to: Re ............................. tEBRI .  Issue Brief, 1100 18  A job opportunity 24% 10% 24%28% ? Moreover, organization. that sense It analyzes a 51% of   savings shortfa nd 21 rep %ll ort may s reinfl sea urenc ch e data their without sensitivit spin o 489% % y to rtax unde lawrlying changes. agend Asked a. All fin howd they ings , those with a plan to report assets of $100,000 9%   or more (3 percent vs. 33 perc26 ent). % Not Too Confident 25%   46%   Confidence Survey: Confidence Rebounds—for Those With Ret 8% ireme 8% nt Plans,” EBRI Issue 19% Brie 8% f, 8% no. 397, March 2014. 33% 42%   2014 Full-time Workers: 79% 13th St. NW, Suite 878, W15% ashi   ngton, DC, 200200 05-4405 48% 1. C 2009 opyright 2010 2014 by 20 E11 mploy2012 ee B 13% en  e20 fit13 Rese2 a014 rch Institute. All rights reserved. No. 397. a retirement plan, and those who doF not. ollow  Through on 37 %Implementing7%  Advice, Plan* Plan 14%   18% 37% Those Providing Information 26% 36%   ................................................................................................... 6% 33% 46% ......................... 19 18%   Workers 42% 41%      79% 1638% % whether on fi Anan  decrecial a$10 se in0,00  data, the0  va  to lue  less option  of yo  thuar nsa s  $v , 2 inor tre 50,0 gs or00nds, are reve 26% aling and 43% reliable — the re 38% ason EBRI information is would respond if the la 15% w were changed so that workers are no longer able to contribute to employer-sponsored Lifetime Income Estimates .............................................................................................................................. 20% 19  6% 14% 23% 17% 21% 17% AT A GLAN CE 38% 46% Increase the amount yo 16% u contribute So 17% cia   l Security 16% 36% 15% Retirees 62% 27% 32% 32% Among Tho invesstme e nts Rece 32% iving Investment Advice 6% 89% Less Than $1,000 17%   36% the gold sta 31% ndard for private analysts a 20% nd 27%decisi 29% on make 30% rs, 2gove 8%33%r36% nmen11% t policy 73% makers, the media, and 48%   8% 5% Somewhat Confident There is evidence that many workers 12%Somewh ackn at usowle eful 12% dge their savings shortfalls 15%for    retirement. Many workers report they 40%   49% Report availability: Figure 23, Usefulness of Do retirement sav ings This 11% plans re L Lifetime Inc port $25 o0,00 is n a availa 0pret  to less ome Calculato ble ax  thbas a on n $is th 500,0 , e but I0n0 twou e r11% Estimate Am rnet 11% ld at 11 pa %www y no .ta e ong Those Pr b xes ri.org on inves tment oviding Information income, two-thir ................... ds (65 pe20 r- 20%   10% 10% 30% 29% 28% 33%34%   2% 16%   39% FinTax dings Deductibility in this year’s of RC Retire S, tm he ent longest Plan -Co run ntr ning 8% ibutions survey ............................................................................ of its kind in the nation, include: 9% ............... 20  7% Keeping health insurance or other benefits 23% 11% 34% the public. 28% 5% 7% 7% 23%   5% Workers 7% (n=1,000) 13% 7% 3% 22%   19% 27%   24%   33%   20%   19% need to save a sizeabHow le—  much perhaps 21% 19%  of    theu  in nv mana estmen geable—ch t advice did6%  yo unk u fo llof owt?h  (Amo 4% eir 6% total ng those household  who obtain 3%e inc d in ome vestmin en torder  advi3% 6% ce;t  o live comfortably in cent) of plan participants say they would continue Wor kto erscon28% tribute 20% at their54 curre % nt rate. 74 % Just 10 percent indicate $1,000–$9,999 54%5% 5% 19 5% 16 5% 5% 17 5% 18 5% 5% 18 16 17 16 17%   $500,000 to less than $750,000 17% ? The percentage of workers confident about havin 16%g enough money for a13% 13 comfortab %      le retirement, 18 14% % at record lows 4% 4% Figure 24, Likely Response if No Longer Able to Contrib The Employee Benefit Research Institut ute to Employ <0.5% er Retirement Savings e (EBRI) was founded in 1978. Its Very Con Plan fident on Preta mission is to x Basis, 3% 3% Empl Don 24% 'toym  know en  /t  Refuse15% d 3% 31% Target Setting ................................................................................................................ Under $250,000 $250,000 to $500,000 to $14% ,000,000 to $1,500,000 or Don't kno ............................... w/ 21  2014 Workers n=239, Retirees n=152) 8% 17% Ret 13% irees (n=501) Retirees 29%  25% 14% Trying a different career 8% 14% 21% retireme nt. While one-third (32 percent) say they need to save up to 20 percent of their income, 22 percent say they 7% 10% ? they The per wocenta uld rege duce of workers the amo unt confident they contr about ibute havin to gth enou e 3% plan, gh mo and ne 5 y perc for 9% en a ct osay mfoth rta ey ble would ret9% irestop mentco , a ntributi t recorng d lows 2001 2002 200 contribute to 3 2004 200 , to encourag 5 2006 5% 200e, an 7 200 d to enhanc 8 2009 201 e the developmen 0 201 5%1 2012 20t of sound empl 13 2014 oyee benefit between 2009 and 20Ve 13ry ,  Va incre lua$b a 4le se 99,9 d99 iSom n 2014 ewh$9 . at99 Ei 21%  Va gh ,9l99 ute aben le 12% pN $1 eorcent ,4 t Too 99,9 99 Va arlu e ano blew mor very Not e  atconfide  AlDo l Va n'tlu  rem nt ab l(u eemp ber from 13 percent in 199 19933 199 19944 199 19955$75 199 19960,00 6 199 1997 07 to 199 1998  less 8 199 1 999 th 9an 20 2000  0$1 0  200 2mill 0011ion 20 2002 02 200 20033 20 2004 04 200 20055 22006 006 200 20077 22008 008 200 20099 22010 010 201 20111 22012 012 201 20133 22014 014 Among Plan Participants .................................................................................................................................. 21 $10, 2Le 0000 08 ss than –$2 4, $199 ,000 92009 $1,000– Re$9, s20 p999 13 o1n0den11% t $10, 11 00 200– Re 11 $24, spo 10 11% 999 nden 11% t1  20 and/o $25, 212000– r Sp 11 $99, ou9s99 e208 13$100,10 000 or2  0 Mo 145 re 38% 38% 0% EBRI explores the breadth of emplo 1993 199 Ver 4 199 y C5onf 19919% ident 6 1997 1998 199 Somewhat 9 2000y200 ee ben  Co 1 n 20f0id 2e200 ntefits and related issues. 3 2004N200 ot 5To2o 00  Co 6 200 nfi7de 2n 00t8 2009 N 201 ot0 at 201  Al 1 l 2Confi 012 201 den 3 t2014 1994 1918% 95 1996 1997 1998 1999 2000 18% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 10% 2012 2013 2014 Planning Who we are by Retirees 1993 .......................................................................................................... 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ............................ 2014 23  Not too useful think they need to save betw2 een 013 2programs and so 0 and 29 perc 2014 36%ent und public policy 5% of their 2013 income, through objective and another 2014resear 22 percent ch and educati indicate on. EBR 9% they I is the only need to save altogether. Pa199 rticipants 3 1994 1995with 1996 199 househol 7 1998 50% 1999   d 200 inc 0 200 ome 1 200of 2 200 less 3 200th 4 200 an 5 $ 2035, 06 200 000 7 200 m 8 2ay 009be 201 0more 2011 201 lik 2 20 ely 13 201 than 4 higher-income between 2009 and 2013, incre Empl aseoy d i ern - 2 spo 014 nsored . Ei  ghteen percent are no Wor w kvery ers confi Reti dre ent es (up from 13 percent in 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20Wor 01 20 kers 02 2%2003 2004 2005 42% 2006 2007 208% 08 2029% 09 2010 2011 2012 2013 2014 2013), while 37So p urce ercent :  Employ eare e Bene somewhat fit Research Institutco e and n fGide reenw nt. ald &Twe  Associnty-four ates, 2014 Ret ire p45% m eercent nt    Confid eare nce Sur not vey. at al 71% l confident (statistically 30%   $1 million to less than $1.5 million 22%   EBRI studies the world of health and retirement benefits — issues7% such a 7% s7% 401(k)s, IRAs, retirement So So So Sou u u urrrrccce: ce: e e::           Em Em Employe Employe ploy ploye ee e e e    Be Be Be Bene ne n ne efi 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    G G Gr Grrreen een een eenw w w waaal allld d d d    & & & &    A A A Asso sso sso ssocccciiiiaaaatttte ee es, s, s, s,    2008 2011 2014 2014– –   Re Re 2014 2014 ttiirre e  m m Re Ree ettn niirrtte e   Co Co m me en nn nffiittd d   Co Co en enn nccffe eii  d dSu Su en enrrvvcce eey ey   Su Su .s.rrvvey eyss.. 42%   <0.5% 49%   20% Figure 25, Likely Response Sour So So So So Sou u u u uSo rrrrrcce: ce: ce: ce: ce: ur e:ce                  Em Em Em Em Em Em :  if Employer No Longer Made Matching Co Empl ployee p p p p plllllo o o o oyyyyye e e e eoy e e e e e e      Be Be Be Be Be Be e Be ne n n n n nprivat e e e e ene fi fffffiiiiitttttt      fRe Re Re Re Re Re it Resear sssssse e e e e ee, nonprof a a a a a arrrrrrcccccch h h h h hc       In IIIIIhn n n n n  In ssssssttttttiitut itut itut itut itut sttuitut te e e e e e      ean an an an an an i tan d d d d d d , nonpar        dG G G G G G Gr rrrrrreen een een een een een eew w w w w w nw aaaaaallllllad d d d d dltisan  d      & & & & & &  &       A A A A A Ass  Asso sso sso sso sso sso o, ci ccccciiiiicWashington, DC-b aaaaaat iattttte e e e e es tes, s, s, s, s, s,,      1994 1993– 1993 2014 1993 2001  2014 – –  – –R  20 20 20 20 2 Reti e014 tir 14 14 14 14 ntributions, Among Plan ree      m Re Re Re Re Re men etttttnt iiiii6% rrrrre te e e e   Co m m m m m Coee e e ennn n n n nffitttttased organi ide d      Co Co Co Co Co ennnn n n cncefffffeiiiii dd d d d  Surv Sur en en en en encccccveee e eeey     y  Su Su Su Su Su .. rrrrrvvvvvzat ee e e ey yyyysssss.....ion com Pa 6%m rticipants itted exclusivel ............. y to 21 $25,000–$49,999 14 11 12 11 10 9 9 14 44% 2 Source:  Employee Bene reftiti  Res rem earecn h tIn  sa stitu vitng e ansd  pl  Gan reenwald & Associates, 1993–2014 15%  Re   tirement Confidence Surveys. 30 percent or more. However, 2 in 10 (22 percent) do n Re ott iree know s how 19% much 23% th 5%ey 42% should be saving 5% (Figure 19). All in all, Use of Financial Advice ....................................................................................................... ............................... 24  partici 2013),p w ants hileto 3 7stop percent contr are ibut somewhat ing. confident. Twenty-four percent are not at all confident (statistically Source:  Employee Benefit Research Institute and Greenwald & Associates, 1993-2014 Retirement Confidence Surveys. unchanged froSo m ur ce: 28   Em percent ployee Bene fiitn  Re2 se013 arch In). sti tute and Greenwald & Associates, 1991–2014 Retirement Confidence Surveys. income adequacy, Hasco  Rensu tiremm ent er-drive  Plan* n benefits, 3% Socia No Rel tiSecurity, rement Plantax treatment of both retireme 24 nt and health 21 42 public policy research and education on 3% economic security and employee benefit issues. $1.5 million or more 31 27 30 36 0% 15 41 34 13 8 6 1 4 29% RCS Figure 26, Workers Having respondents reported aTried to Calculate Ho wide disparity in estimates w Muchof Money They Need to Save these targe 1% t savings rates, for a Comfortable Retiremen although workers participating t in unchanged fro$5 m0, 28 000 – percent $99,999 in 2013 11 ). 12 11 9 10 10 9 14 <0.5 benefits, cost management, worker and employe r attitudes, policy reform proposals, and pension assets Expectations About Retirement ................................................................................................. EBRI’s membership includes a cross-section of pension funds; businesses; trade associations .......................... ; 25  Workers 24% 41% 65% ? Forty-three percent 2000Ind27% 2001 ivi ofdual plan 2  re 002t iparticipants rem 200e3nt accou 2004 n tsay  2005 or IRA that 2006hav 2007 ing t2008 he financ 2009 15% ial 2010 services 2011 compa 2012 2013 ny that 2014 handles their Don't know / Refused Not at all useful ? This increased *Ha confidence s Retirement Planis  define observed d as having at  almo least onest  of exclusive the10%  following : IRly A, DC among  plan, or DBt h plaose n  with higher household income, but it was a retirement plan tended to express targets that were somewhat smaller than respon 27% dents without a plan. Most workers and who fundi state 1993ng. 19a 94s There is wi 19 p9ecific 5 1996 19 labor un amo 97 19 de unt 98spread ions; h 1 9they 99 2000 ebel alth re 2001 icog eve car 200e prov 2 ntition h 20ey 03 20 iders and insur need that if employee be 04 2005to 2006 accumulate 2007 ers; 2008 government org 2009for n 20 e10 fits retire 2011 data exist, EBRI kno 20 ment a12 nizations; 2013are 2014confi and service firms. dent w that s it. that Retirees 15% 26% 41% Lifetime Income Estimates Worker confidence in Medicare’s current level of benefits being maintained in the future is also low (Medicare is the Figure 27, Amount of Savings Workers Think They Need for Retirement ..................................................................... 23 SouBef rce:o   Employe re 60 e Benefit Resear60– ch Inst 64 itute and GreenwFigur ald & A65 ssoe ci a25 tes, 1993–2014 Reti66– reme6n9 t Confidence Surveys 70. or older Retirement Age ................................................................................................................ $100,000–$249,999 1323%   12 Fi 11gure 14 43 11 26%  12 11 16 2 ............................. 25  ? retireme This increase nt pla d nconfi gived th enem ce is recommendatio observed almo ns st as exclus to ho ive w ly mu among ch to withdraw those with from higher their ho pla usehold n each incom month e ($7 to 5 help ,000 The percentage of retirees 22%v   ery confident about having enough money to cover medical expenses has also increased, 20%   Source:  Employee Benefit Research Institute and GreenwFigur ald & Assoe cia  37 tes, 2013–2014 Retirement Confidence Survey. 22% also found thaSo t uconfi rce:  Emd plen oyeece  Benw efita  Re s sestrongly arch Institute an co d rrelate Greenwald d & Awith ssociateh s, o 1993– usehold 2014 Retirparti ement Co cipation nfidence Su rvin ey s.a retirement plan (including Figure 32 2014 Retirement C Very confident Somewhat co onnfidence fident Not Survey Underwriters  too confident Not at all confident amount will provide them with a comfortable retirementFigur Fi Figur , alth gure ou ee    52 7 gh they tend to be somewhat (50 percent) rather than Source:  Employee Benefit Research Institute and Greenwald & Associates, 2014 Retirement Confidence Survey. federal health care insurance program for the elderly an Figur d disa e bled). 35 Nine percent of workers are very confident that the Expectations About Retirement 10 Workers savings participatin and g inSo Othe ivnu estment rce: thr   eir  Em pepr los current yoen elast  al BeLi  nsa ek fvi througho ite  Re ngs em lsy ea   and pl rR choyer’s  e In  in ssponse tiut tvuetestm  ret anretir de  G in rement reen t sif ew m  aEm lde  &nt   Aplo wou sso savin ciay tled se , In gr be c s .,No  1991 pl very an  –Lon 2014 were va  Reglua ter irem pr b  eMa nle. ovided t Confi Add ne eother n cewith  Surve y4 sa 5n percent estimate thiof nkho it w wo muc uld h be Figure 28, Timeframe When Retirees Bega or above), but confi Retdire ene ce  Con was falso idence n to Plan Fina foun  Th d to atbe  Med Wor strongly ncially for Retirement, Among Retirees Wh kers icare correlate  W 28%ill Con d wit tinue h 40% house  to Pr hold ovid 68% participatio e  o Planned for 26 3n in a retirement from 24 percent in 2013 to 34 percent this year. However, Figuther re 19 e is no statistically meaningful change in the percentage Working for Pay in Retirement ........................................................................................................................ 27  $250,000 or MorEBRI’s work advances knowledge and unders e Re9ason1s2  for Wo111 rking01  in Ret0irem1e2ntanding of emplo t, 11 17 y1ee benefits and their EBRI delive an individual rs a stead retirementy acc stream of invaluable research and anal ount (IRA)). Nearly Figur half oe f  workers 16 without a ret ysis. irement plan were not at all Trend in Workers’ Expected Retirement Age very (33 percent) confident about that result. Two in 10 are not too (11 percent 18% ) or not at all (6 percent) confident. Wo Worrkkeerr  Con Confid fidence ence  in in   Ha Hav viing ng  Enoug Enough h  Mone Moneyy  to to Retiree Confidence in Having Enough Money to Medicare system will contin Com ue to parison provide  of bene  Expe fits ct ofe at d  (W leasork t equal ers 15%  Exp value ect 27 to %i n the g to benefits  Retirerec ) an eived d  by retir 39 ees today, Source:  Employee Benefit Research Institute and GreenwRe aldt  &iree  Asso sciates, 2014 Retirement Confiden 42% ce Survey. Figur e 14 Source:  Employee Benefit Research Institute and Greenwald & Associates, Inc., 2014 Retirement Confidence Survey. annual incom somewhat plan (ienclu their din val pl g uan able. anwo in divi uld M dual provi atc retirem hing de in  Co retireme ent ntac ributio count nt based (IRA ns, Am o )). n th Nearly ong e D ePl partment hal an f  oPa f workers rtoic f iLa pabor’s n witho ts Lif ue t time a re tirem Income 33 ent Ca plalcul n were ator. very confi Retirement .................................................................................................................... dent about199 payi 3 1Be 99ng 4ne 199 for 5fit 199 lon s 6 importance to of 199 g-t 7 at erm 199 8Lea 199 care 9s2t 00th  expenses 0Eq e nation’s econo 200u 1a 200l 2Va 200 : l20 3u200 e p  4to e my 200 rcent  5Be among policy 200ne 6o200 f fit retir 7 s 200  Re 8ees 200 mc 9akers, e co 201 iv nti 0e201 nue d the news  1To 201 to d 2 a b 201 .................................... 23 y emedia, and 3 very 2014 confithe public. It dent, Percentage of Household Income That Workers Think EBRI publications include in-depth coverage of key issues and trends; summaries of research Retirement Age confident abou*t Hatheir s Retiremfinanc eAm nt Plano  de ial n fined gsecurity   Wo as respr onkdee nt in r s or  r  spWho eotirement, use ha vExpe ing at le aco sc t t on mpared  eto  of  thWo e follow rwith k ing  in : IRA  oRet , DC nly  plainabo re , orm  DB u  e pla t n 1 n tin 10 with a plan. Sources of Retirement * U.S . Incom Department e  of ..................................................................................................  Labor. Years Saved for Retirement,  ...................... 29  EmployerTa -prkov e idCa edr  trea dof itio  Basic nal   Expenses in Retirement while 30 percent are somewhLiv at con e Com fident fort in a that bly Pay result  Thr  foo r ug (up Long hout from -Te  The r24 m pe Ca irrcent  Re retirine m 201 en 3). t Ye Twaenty-nine rs percent are not at all Many The likeli America hood n of s carry doing what a retithey rement see Ac does this b tua savi as ngs la   probl (Rnee ye co tierd matic nducting ees) s calcu  Wo am laand p ount tion rk fo inc ublishing policy re of r rease Pay debt . in sTwenty with  Ret ihouseh re perc sear mech, analysis, ent nt old of income, workers and edand ucation, special reports on 23 16 percent and of Most of these workers So(58 urce:  Em percent ployee BeRe n)e fritt e  Reiport rse eaes rch that In  Ha stitutev the  aning d Gcalc reen  Sa waul v lde  ator’s &d  Asso  Mo cia testimat es,n  1993 ey – 20fo 14 es r  Re  Ret are tiremeabout inre t Com nfidene what cnt e Surveytsh . ey expected, 20 although What we do not at all confSiudppo ent se  tha about t in additio their n tof inanc this chan ial ge se in th curity e tax trein atme retir nt ofe  yo ment, ur retirecompar ment plan,ed  yourwith  employ only er no  lo ab nge out r  1 in 1 0 with a plan. statistically unchanged finding from s and 16 policy percent develo in 201 pments; 3. The per timel cen y tages factsheet not s at on all hot topics; confident about regula me r up dicda al tes (14 on legi percent slat in ive and AARP Source:  Employ The ee Beyne  Need fit Researc hto  Inst iSa tute v ane d Gr  to een wLiv Wor ald &e k  Aers  sso Co ciatmf es,Mercer  2004 or 29% –ta 2014b  Rely ti rein me 27% nRe t Contir fidene c56% em  Sure veys nt . Planning by Retirees Figure 29, Follow Through on Implementing Advice, pension or cash balance plan Among Those Receiving Investment Advice .............................. 24 ? Nineteen perc Ho ent w coof nfiwork dent ar ers e yoand u that 25  thepercent  Medicareof  system retirees  will co rnt eport inue to th  pr ey ovide have  bene obta fits of ine  atd  leas investment t equal  advice from a by Age and Retirement Status Is… a major reaso emplo n, minor yee benef  reason, or its issues; holding educational br  not a reason why you will work for iefings for EBRI memb pay after you retire? (2014 ers, congressional and Many Health workers Care are Expenses adjusting in Ret their irement expectati ................................................................................................................ ons about reti Figu rement re 40 , perhaps in recognition of the fact that their financial 30  confident that Medicar made Ov O eve’s era  rma all, ll, be  how t cho nefits hing w  co   co cnofnnitd will fributio iednetn  ar cont t ns ar e yo  eto  yo u inue  yo  tha uu  th r tpla   a yo to tn  uyo .  will e Ho uq  w w  ual ha  ill wo  vFi ha e uor  lenoug g dve  u thi  exc enoug re s lik h   eed emone 11 lyh  ch mo an th y ne to ge e y  pa yo  bene toyu  rfo tak  cu r relo fits r eca nngtr -  ete cro  e of rnm ceiv t ributio yo  caurre ed  ,ba  nsu  to siby ch c  tha   ex asben tp   nur pla enn sseei?ng fici s       aries today (down Overall, how confident are you that you (and your spouse) will have enough money to live  retirees One financi real as rasset on eport fos r their . the Moreover, ga level p bet ofw workers debt een work is a re major por ers’t ing expro pectatio thb ey lem, orns th an eir and d an spouse r etire additio es hav ’ ne ax e l peri 38 an percent ence IRA, de is m fi of ned any workers contri America buti anns d on, 28 fin 17or perc d tdef hems ent ineo e d flv be retirees esnef it ? Retiree con regul fidence atory in de havin velopment g a financ s; comp ially se re cure hen Re retirem si tiree ve srefere ent, nce wh 36% ich resou histrorically 18% ces o 54% n te benefit pro nds to excgrams eed work aner d workforce 27 percent say that it Do is  yoless u thinthan k you w expect ill do an ed y wo (Figur rk for pa e y 22).  afte r  you retire?/Have you worked for pay since you retired?  12 Ameriprise 2014 and 15Fi p nancial ercent in 2013) and long-term 1991 care 19 (30 99 pe200 rcen 4 t in 2009 MetLife 2014 2013 and 342014 percent in 2013) expenses also do not value to the ben efits received by retirees today? (2014 Retirees n=501) Wo Wo ulrdk  yo erus …who  (20 1w 4 ill Wo  wo rkerkrs  fo  wh r opa  cy o nn= tribut 610) e money to an employer-sponsored plan n=414) Six in 10 retirees (60 home perc durin ent or g yo  home u ) r ire ndicat  he tire al federal agen me th e ca ntrth ?e  ,(2  ey sh 014 o udi  ld cy Wo d  yo srsuk to aff, and th  eneed me rs n=  it1 typ  ,duri 000) e e news ng of  yo fi urnancial  re media; tireme nt plann and sponsoring public opinion survey ? (2014 ing  Wo rfor ker sr  ne=tirement. 1,000) Forty-two s on emplo percent yof ee ? professional Retiree conf idence financial in adviso havingr a who financ was ially paisde cure through retirem feese nt, or commissions. which historically Of these tends wo torkers, exceed 27work percer ent followed co Abmofut or  wh tabalyt  thr perocug enhou taget  of yo  yo ur ure r tto iretaml ho entusehol  yearsd ?  (in2014 com eR edo tir  ees you  nth=i501) nk you (and your 7% spouse) need to  preparations may be inadequate. While just 18 percent of workers in the 2014 RCS say the age at which they expect to f Figure 30, Perceived Value rom 37 percent in 20Wo 13) (F rke ig of Withdra ru  Con re 42f)idence . wal Recommenda  That Social tions, Among  Security Wil Plan Participa l Continuents  to ............................................ Provide  25 Tax Deductib ility of Retirement Plan Contrib (2014 For abo  Wo Ret urtk  how eirrse  e  e man xpecting  Con y yeaf  to risd   ha reence tviree  yo  n=u  911 in  sav  ,Fina e  Re du  (did ttions irencial e  yo s n= u  sa 501  vPr e)) foep r rear tireamtieontn?   (A fomron  Ret g those ire m whoent  have  But describe plan Confidence i fare workers twic it as e a in recogni as minor Entitlement issue likely No z pro t s e  as including ; they and bth lem. ose Pr need major survey  ograms So Forty-t who cialto  Se do csave w u ............................................................................................ r o in tyo percent  ta t more sxto eo s for have 34 pu  % em to of blic ploy ensur do wor er at ne -k titudes. pr e er a o a vs cid alculat com seay d mo fde ortabl nie bt on y, did is (56 e  not yo retir uperc  (and/ a eprob ment, ent or yo le vu s m why r.  sp 25 for ouse) perc ar th en’t  em, peent rs onally they l)e. vel In   .................... doin w ad ith dition, g 39 so? pe M married rcent ost— 30  retiring confid unexpectedly. ence lev e Th ls, e has RCS also has increased, consistently witfo h un 28d pth ercent at a lar ve gry e perc confientage dent (up of from retirees 18 leav percent e the in work 2013) forc and e ear 17 lier per- BMO Retirement Services Nationwide Financial show any statistically meaningful ch benefit issues. anges (Figures EBRI’s Ed 9 and uc 10ation and Re ). search Fund (EBRI-ERF) performs the charitable, save each yea VerVe  ryfrryom now Som un Sotmeilewh  yo whataut expect to No No  re tt  Too To tire o  so you ca No Non tt  At  At liv  Al  Al el lcomforta Do b Do nly'nt  'tKno t hr Knw o ow /ug R/R efhout ef usued se dyour  Source:  Employee Benefit Research Institute and Greenwald & Associates, Inc., 2013 Retirement Confidence Survey. these ret all irees of the say adv they ice, bega but n more to plan disregar 20 yeded ars or some more of befor the ad e vice they an red tired, followed and ano most ther (36 27 percent) percent or reso port me begi (29 nnin per- g to confidence lev sa sav evels, e  an d fo y has  mo r rentalso iere Ve Ve y m rfo ry ye rint  n recreased, )tiremSo So ent mew me  w be hhwit at at fore h  yo 28 u  re percent Not No tire t  To Too do?  Th ve esery  sa No Novings confi tt  At At  Al Al llco du ent ld in (up clude Do Donn''tfrom t   Kno mo Knowwne //RRey 18 ef f uyo usseedu pe d per rcent sonally in   2013) and 17 per- retire has cha n ged iEBRI n the past meetings year, present an of those, d the explore i large majo ssues rity with (82 thou percent ght )leade report rs that from all se their expected ctors. retirement age Benefits of at LeastMaj  Equa o31% r reaslo Va n lue to Ben Minor e refaist ons Received Today 53 percent—say they simply can’t 31% afford it due to the cost of living and the press of day-to-day expenses. Other Dimension measured One than workers mi plann ght (com last e a ex d l pect Fund pared (49 year percent that Advisor a with nd th 40 si e in n is percent ncreas g 2014) les) an e educa (Figur in d in r2005. ree tiona tir ti e rement e34). ment l, and Most Ma scientif savers co (55 ny nfi Wo ret per dr ence ic func k(com ierees cent) rs par note ti who ons of the Instit of Re e New York Life Retirement P d d retirees tirrwit a e eb e tir sove he d nonsavers surveyed earli wou ute. EBRI ld er be tha ) don’t bas more n -ERF pla edn report ofte is a tax-ex ned on lan Services a n cit n ra e ie m port problem negativ provement empt organizatio tryinewith g reasons to i n do debt, a n for Figure 31, Workers Ex cent not at all re confid pectin tiremen ent g to Retire Later Than Plann t? (2(stat 014 Wo istically rkers n=1 unc ,000) hanged from ed ..................................................................... 14 percent in 2013). 2% ................... 26 Amid federal budgetary concerns and questions about the efficacy of the tax preferences currently provi 38 ded to RCS Methodology ............................................................................................................... Figure 22 ............................... 32  3%   11%   7%   put into a retirement plan at work. (2014 Retirees n=501) 11%   plan between 10 and 19 years before retirement. HowevFigu er, r 1e 1  18 percent say they started plannin 16% g five to nine years Again, worker cent) cent not of confidence it. at all Ovconfident erall a , how bout  co(stat the nfid efut n istically t ar ure e yo value u  unc that ha yo ofu nge  Me did d dic a  good from are  job bene 14  of perce  pr fits epais rnt ing higher  in financially 201 among 3).  fo r youthose r retirem ag ent es ? 45 and older, and EBRI regularly provides congressional testimony, and briefs policymakers, member organizations, has increased. This means tWor h 10at %kers in  2 25 014, -34 (n 1 =5 110) percent of Wor al kers l workers  35-44 (n= pla 150n ) ned to Wor postpo kers 45 ne -54 th  (n= eir 216 re)tirement (although that 9%   supported by contributions and grants. Fidelity Investments Principal Financial Group reasons but retirement calculation. that for perce preparations, non t tage saving, has or slo but no wt this ly saving decrease doesmore, not Stdop over appear  co for ntribut r tim ein tirem to g e  a flto be ro ge em nt th th e 69 e rinclu case pede: rcent for m inany 2005. wo rkers. In addition, The per 24 centa percge ent of ofworkers workers who and leaving the work force when they did, including health problems or disa 12%bility (61 percent); changes at their company, 13% workplace retirement Ho savi w co ngs nfide plans, nt are yo some u that the in Con  Social g ress Security an  sy d se telm se  will wh  ceorne h tinue ave  to  p prroop vidosed e bene fits chan  of g ati n leas g those t  preferences. (2014 Retirees n=501) Endnotes ...................................................................................................................... Extent to Which DoL* LifetimeFi  Incom gure 9e Calcula 11%  tor Estimate Ma .................................... tches  34  Figure 32, Trend in Workers’ Ex Wapected R nting to stay activ etirement Age e and involv26 ed% .......................................................................... 67% 26% 23% 90% ..................... 26 and the media To on employe tal Savings r  benefits. and Investme11% nts Reported by Retirees befor It retirees should e ret are be irem m no o eted re nt, likely an that d 14 tha alth percent nWor ough workers kers 56  55 started percent + ov (n=er 24all 8 less ) of to th workers be an 13% confi fiv Reteird ee expect years ent. s (n= Even 3before 75) to rece so,t ive h just at bene poi 12 nt percent fits (Figure from of a 28 retirees defi ). ned are bene very fit pla confi n in dent in ? Fifty-eight percent of workers and 44 percent of retirees report having a problem with their level of debt. Respondent 25%Respondent 11%   and/or 11%  Spous14% e    is FINRA down Investor from 22 Education percent in 201 Foundati 3) (Fi g oure n 31). Prudential Retirement All of itUnder 10% Most of it 8% Some of it None of it equal value to the benefits received by retirees today? (2014 Workers planning74%  to retire n=911) 17 reported such perc as ent downs they of retirees and/or izing or th indica closur eir sp 20% te e ouse (18 thatpercent had their 24%saved cu ); rrent and for level havi retirem ng of e to de nt care bt inis crease for higher ad spouse brief thanly it or in was 16% a 2n 0oth 0f9 ive (to er years fam 75 ily percen agmem 17% o, 18%while t), ber but (18 35th perc perc is eent). nt of ? Worker confidence in thVer e yaffordabi Solity mewhof at various Not aspects Too of Nort e Attirem  All ent has Don't Kalso now/Refrebou used nded. In particular, the Respondents to the 2014 RCS were asked how they would respond if the 72% law were changed such that they could no 11% 21%   ? Currently E une BR mployed I Ex issu pe es ctor pre ed un Re  ss Lev derem trele ire ele  as of  pCon loye e  Incom s f on ne d id(14 enece wsworthy  perc 23% Am  inent). ong  23% Havin   Those developm g Enoug  Prov h ents,  Mone iding and i  yIn  to f so arm mong ation the most widely quoted 28%   Among 70%  Those Providing a Respon70% se 70% 74% 74% the retirement, value ofon thly e f31 uture percent bene r fits eport paiEBRI Issue Briefs t dh by at 24% th Me ey dicare, and/or wh is a monthly th ile ei r1 spouse 8 report periodi curr they cal en with are tly have not in-depth at such all evalu ca onfident benefit ation of em 69% (Figu with plo a re ycurrent e4 e3 benefi ). or t is sues Figure 33, Tre Furthermore, nd in Retirees’ 24 perc Actual Ret ent of workers irement Age and 17 68% percent ........................................................................... of retirees ind 10% icate that 71% their 22% current 71% level ......................... 27 of debt is higher Guardian However, tLife he methods Insurance of calculation reported have been quite vari The ed. Seg Accordin al Company g to the 2013 RCS, workers often guess Source:  Employee Benefit Research Institute and Greenwald & 67% Associates, 2014 Retirement Confiden33% ce Su   rvey. Retirement Confidence 32% perce workers ntage and ha 25 s s percent lowly d ecli of 66% rn eed tirees Ve and ry say now 21% t66% h s So eir tmew ands debt hat at level 64 66 p No is %er t  Too lower. cent (Fi 66%gNo urt e At Al 1l3). The Do perce n21% 't Knowntage /Refused of retirees having saved for Others say perce chn anges tage of in workers the skills very require confident d for their in th job eir ability (7 perc to ent pa ) y 68 orfor % ot 68% her basic work-re expenses lated has r68% easons increased (22 percent (now 2) 9 pla percent, yed a WRed antin ucge  mo then  amou ey to bu nt yyo  extr u cas ontFi ribugteure 38% 28 10% 44% 82% 65% longer contribute sou to employ rces on er-sponsore employee 10 (not %  to in67% d  cl14 be udi re %n tirement ng e fits valueby all media. 16%  of  prim saviangs ry resi plans dence on or da efine prd etax  beneb fita  pl sis, ans)but if instead contributions and 66% 15% 66% 19% 63% and trends, as well as critical analys63% es of employee benefit policies and proposals. EBRI Take Care of Medical65%  Expens 31% es in Retire16% ment Workers planning to delay If you and r e yo tirement ur employe r gave were to 9% the  co  ntinue followi  contributi ng nr18% ge  at asons:     the same percent7% age    of compensation until you retire,  previous Our employer. 64% 64% 14% ING U.S. than it was five years ago. 61% T. Rowe Price 26% at how much they will need to accumulate (45 percent), rather than doing a systematic retirement needs calculation. 62% 62% Figures ? Paying off non-mortgage debt (6 perc 18% ent 61% ). 20% 29 retireme role. Figure 34, Timing of Retirem Of cours nt clim e, bed some slowly retirees from ent, Among Retirees mention 59 percent positive in 20reasons 00 ............................................................................... to 74for perc reent tirinin g e20 arl 11 y, a su nd chnow as b st ein ands g abat le 66 to af per foc r .......................... 28 d ent a n (Fi ea grl ur iee r 14). from 2 5 perc EBRI eso In nt m  to direct eta in  rel, t  abo i2 re013 m s uet nt membe ho ).  cal w Imuc cn ul aad thor  mone rsditi s  esa tiy on, m nd  wo ate u  other constit ther ltha d yo t u yo e  sa urhave y  em youp l(an oy b er deen uen  -yo spo urn  sp cie sdoe ou recreases s dse)   pla to  cunr  the informatio cou rentlld in y  pr ha o th vveid  e in e  p sa a e m vircenta n ognstn  hand lythey need an r ein ges tivreem stme en of tn  tworkers s,  d unde reporting rtakes th new ey subsequent earnings Tim on e thos fram e contri e When Notes butio is a monthly  Retir ns 59% were ee s not   pBeg e riod subjected an ical pr  to Pl oviding curr to ana dFinancial ditional ent in ta formation on a variety ly xes  foat r Retir withdra em we al— nt, of emplo b  asically yee benefit 56%17% 17% 27% Overall Retirement Confidence 10%   Overall, how confident are you that you will have 23 en% ou   gh money to take care of your medical  J.P. Morgan Asset Manag 16% ement 49%   15% to 19% TIAA-CREF In 49% 16% stitut    e 66% 9% not including the value of your primary residence (or value of defined benefit plans)? (2014 Retirees n=345) The Eightee RCS n has perccent onsistently each inco indi mefou  fo cated r36%  lif ned  ofa  t[es hrel tey imat ations di e24% dd  am th Enj hip oun eir oty].ibet ng  o Keep  w wo w nr  in k ee esti in  mind gn mate t  tha he t lth eor isvel  doaske e51% o s no f de td  accou bt a fan n inanc t fod r an re ial ytirem  retai30% re dm visor, e ent nt  sacon viwhil ngsf  id tha e ence t 8 you perce   . Jusntt 3ea pe ch rce used nt ofa n 42%   82% research on an ongoi topics. ng EBRIef basis. is a weekly roundup of EBRI r 42%   esearch and insights, as well as updates on ? The poor economy (25 percent). 16%   63% 43% retiremeare nt (26 not perc at alent l co )nfident or wanting about to their do s o ability mething to pay elsefor (19 mperc edicent al ex ). pe 38% nses (24 percent, down from 29 percent in Figure 1, Worker Confidenc publications expens26% e in Having es du    ring your re Enough Money to Live Comfo tire14% ment? (2014 Retirees n=501) rtably Throughout Their Retirement Years 14% ........ 7 transforming the current 401(k)C ostructur ntAm inueon  to cont e g to R ribe ute a ti Roth r whees at 61% yo  401(k) Who u do now6%  Pl a   pproac anned h . fo Pr e rhaps Retire rem spon entding to their already-expressed The Figure 35, Comparison of Ex reasons ? ? Worker Paying most off confi a often m dence ortgage offe in red pecte t h or e for ho affordabi d (Work not using followin ex ers Ex lity pense of g v pecting aarious sll (5 of percent thaspect to Retire) and Actual (Retire e advice ).s of incl reu tirem de: ent has also es) Work for Pay in 41% rebounded. In particular, the RCS Methodology might ha ve outside of your em 48% ployer-sponsored plan. Would you say that this amount is… MassMutual Financial Group 59% 59% Vanguard 10% Health Care Expenses in Retirement 24% 37% 27%   American workers’ confidence in the surve ir aybs, studi ility to es, retir litig e ation comfortably, , legislation and r which elan gulg ation affe uished at cting e recor mplo d lo yws ee benef betw itee plans, while n 2009 an d Moreover, workers online calcu who not lat describe or all or workers reath d eir or w heard debt ho have as ho a w saved major much for pro was re btirem lem neede say ent d they . are curre are ver ntly y confi saving dent for about this pur havin pose. g en Fifty ough -seven money perc to en live t of EBRI maintains and analyzes the most comprehensive database of 401(k)-type programs in the 20% to 29% 34% 2014 2014 54% 11% 22% 2013) and long-term careVe e ryxpenses So m(32 ewha tpercent, Not To dow o n from Not At 39  All percen Don t 'in t Kno20 w/R13 efus) edin retirement. sense of savings shortfall, two-third th s (65 percent) of plan participants say they would continue to contribute at their percentage of workers very confident in t32% heir ability to pay for basic expenses has increased (29 percent, up Retirement .................................................................................................................... 52% 52% 39% 47% .................................... 28 39% 35% ? Inadequate finances or can’t afford to retire (18 percent). 10%10% 10% 10% Figure 2, Retiree Confidence in Having NeedinEBRI’s Blog g mone44% En y to ough Money to Live Comfor make  supplements our regular publications ends meet 47% tably Throughout Their Retirement Years 34%, offering 81 commentar % y on questions ........ 7 These findings are part of the 24 50% annual Retirement Confidence Survey (RCS), a survey Has that   gau No ges the views and worlWhe d. Its co n did yo mputer u (or yousimul r spouse) ation  beginanaly  to pay s ser es ious on So  attentcial ion toSecu  plannirity ng finreform ancially fo and retireme r your  nt income adequacy 2013, has increased in 2014 9% . 9% Eight 9% een percent are now very confident they 9%will have enough money to live comfortably Workers workers comfortably The fin ? ? aEducation Not ncial in expect the trusting th co roughout 2014 nseque to ex ne tpenses RCS h ed e nces advice 48 retir mo report % re of (5 ement, money an perc (34 that un percent ent). com plan th for ey p nhealth a a ered n d of 28% d/or early work with care their r ers e 2tire 9 co sp and pe sts ment ouse rcent in 31 retir can are per of e cent worke be curre ment he of ntly avy. rs than reti who saving Retir rees). do indicat cur ees for rent who e retirem debt r eretir tirees. is ee nt not ea (down Only rlier a pro 11 th b from an lem. percent plan 65 On ned per- tof he are 35% 35% 27% 27% 34% 27% 27% 26% 49% 26% 37% 32% 25% 25% current rate(s), while 16 percent Mucrhe rece  le port ss th ived from atnh  yo ey u ex wou p news ected ld incr reporters ease 8% , p thei olic r contr ymakers ibution , and others to the . EBRI plan. Re tJ .Fundamentals of Employee ust Re 10 t.  percent indicate they from 25 percent in 2013). I30 n % ad  todition, 24%  39%31% there have been 36%   de 31% creases in the percentages of workers 7% reporting they retirement?  (2014 Inc  R rease eti28% rees  the  who amou  pl ntanne  you co d ntr fin5% iabut nceially for retirement n=341) 24% 23% 23% attitudes Consideri ? Sixty-four n og f working-a the aggressive are per22% uni cent ge que. an of savings d work ret 22%ired ertar s Amer report get icans perce they regardin ntages or their ag cknowle spous retirement, e dged 9% have    t earlier, saved heir preparati f it or is retirem noo t ns surprisin efor nt (statistically retirement, g that most th eq eir uivale (60 copercent nfidence nt to ) Figure 36, Reasons for Working in Retirement, Among Retirees Who 10% Worked in Ret    irement ...................................... 6% 29 throughout their retirement years, 5 percentage points higher than the low of 13 percent measured in 2009, 2011, and Figure 3, Retirement Confid cent other in ha 2nd, 009 49 , but percent statisticall of workers 29% y ence by Retire equ    ivalent with a tomajor ment Plan O the perc debt enta prw oble ges nership, Amon m measur are not ed at in g Workers: 2013–2014 20 all 10 con –20 50% fident 27% 13) (Fi abo gur ut e havi 15 ................................... ). n g enough money for8 a workers, more likely buth t 3 an 6 p those ercent who of rretire etirees, whex en pect ex 200 pecte 4 to spe 2d009 n or d later less 2010 than to say 20 $25, 11 they 00 2012 ar 0 ie 41 n not % total   20 13 confi on2 d pre 014 enm t about iums, Plan* co- havin Plan pay gs, enou medication gh mone s, y for ? A change in employment situation (17 per26% cent). 34%   5% 5% 39% Benefit Programs 14%  offers a straightforward, basic explanation of emplo 29% yee benefit programs in 14% 28% 24% would ? re Having duce the other amou ideas nt Kth eep or ey in other g health contri  insurance plans bute or  tor o  othe goals the r be pla ne (16 fn its, and percent 5 percent of 50% workers say they and woul 29 30% 25% perc   d st ent op 74%contri of retirees butin). g altogether are not at all confident about their 40% ability    to pay for medic 4% al expenses (24 percent, down from 29 percent in 38%   35%   However, say they n1 eed in 10 $250, (10 000 perc or en more t) say saved they to do retire n’t ne e comfort d to saably ve or (Fi save gur e mo 27 re. 40% ). As    might be expected, savings goals tend to with regar 66 dperc to various ent in 201 aspec 3), ts altho of reti ugh rement, nearly 8 anin d 10 relate (79 d perc issues. ent) The full -time survey wo was rkers conducte say that d in they Janor uary their 2014 spouse through have 19% 2013, but still well below the historic 40%hig  to 49 h % of 27 percent observed in 2007. Thirty-seven percent say they are somewhat long-t financi a comforta erm ally car sec blee uretireme re costs, retireme and nt or nt ot, her about compare out the priv payin -ofd -po g wi at cket fth o e and r 1 bas 6 ex perc pe public s ic nses. ex 3% epen nt e18 of At ctors s%es work the , . medical The other ersEBRI Data wit extreme, ehout x41% pens a es book on Emplo de 25% 2 , bt 0 and    p pr e rcent oblem long-t of erm yee Benefits (Fwork ig40% car ure ers, e4). ex but pens is a just es stat . istic 3 per al - 17% 2% 17%  15%   17% 29% Figure 37, Reasons for Working in Retire Less Than $1,000 ment, Among Workers Who Expect to Work in Retirement .......................... 29 23% The year yo 27% u retired28% 28% 31% 29% 9% 54% Figure 4, Retirement Confidence Among Workers, by Assessed Level of Debt 6% .............................................................. 9 My employer does not currently provide a (Figure 24). While the sampl Som e e size what  is lesse  tha xtre n yo m u ely expecsmall, ted 1 in 10 of those with income of less than $35,000 indicates an ? Needin 2013) an g to d lo pa ng y -term for health care ca exre penses costs (32 (12 15% ppercent e   rcent, )dow . n f19% rom 39 percent in 2013). 10% EBRI makes information freely available to all. 20% 28% 20-m Not increase sur inute p done risingl as tel ho so. eusehold y phone , workers Here int agai incom ervie employed n, e w partici s rises. wit referen h p fation ull 1,50 ticme e work o 1in individu are a ret more nirement emplo als lik (1, yely ee ben 000 plathan n worke e mattered: fit pr selogr rs f12% -ea ams and mployed, n d 90 50 percent 1 work force-related issues. 28% ret part iree of -time, s) wor age k or ers 25 un 33 partici and e %mployed older pating in work tin hea ers United to 19% 17% 16%    confident. ? Not Tw bein enty-fo g ablu er to perc afford 15% ent    of it 10 (20 work % percent ers are of not workers 14% at all conf and ident 6 percent that they of re w tir ill ehave es). enough money to live comfortably cent of retirees think they will spend at Tryling ea  as  dm t iffa$25 er tcen hing t0,0  caree  con 0tr r0ibut on 15% ionthese e 24% xpenses over the length of th 13% eir 12% retirement (Figure 8% 39% 9% 9%   6% 50% or 31% more 7% 14% intention Figure 38, Expected (Workers Ex to st EBRI op contri assume butins g a publi under pecting th c service re ese to Retire) and Actual (Retire circumstances sponsibility . to make es) Sources of its findings co Income in Ret mpletely acceissi rement ble at .............. www.ebri.org 30 Figure 5, Worker Confidenc $1,000–e in Having $9,999 Enough Money to Take Care of Basic 49% 17 15 14 19 16Expe 17 nses in Retire 14 4%21ment ....................... 9 Retirement Plans Just indicat as e hi th gh ey debt have leset vels mo wei ne gy h aside on con for fide ren tirement ce, worker (79c o pe nfrcent idence vs. in47 having percent). enou In gha money ddition, for ho a useholds comfortable with ret a irement States. Ran retirement dom-dig pla it diali n hand g saved was used for retirem to obtain ent, a compared representative with cros just s 1 section in 5 of those of the witho U.S. 2% popu ut a ret latiion. rement To furt plan. her Before 60 60–64 65 66–69 70 or older Never retire Working throughout for their Pay in Retir reti19 rement 93 1994 19 years ement 95 1996(still 1997 19 far 98 19 above Th99 e ye 20a0r0 bef th 2001 oe relo 20  yo 1% 02 w u re 2of 0t03 ire 10 d2004 p20 ercent 05 2006 in 201% 0720 2007 08 ), 2009 and 2010 1% 19 2011 p20 e1% rcent 12 2013 ar 201e 4 not too confident 39). Sur ? Lack prisingly, of faith anticipat in Social ed total Securi hea ty lor th gove care rnm expe ent nse (9 s d per o not centap 1% ). pear 0%to be related to self-reported health status. ? Sixty-four per199 cent 3 199of 4 199 work 5 1996er199 s 7report 1998 199t9h20 ey 00 or 2001their 2002 200 spous 3 2004e200 have 5 200 6saved 2007 200for 8 200retirem 9 2010 201e 1nt 2012(statistically 2013 2014 equivalent to 199 2000 3 199200 4 199 1 5 199 2002 6 19927003 1998 199 20049 2002005 0 2001 200 20062 2002007 3 2004 200 20085 2002009 6 2007 220 010 08 2002011 9 2010 2012 2011 201 2013 2 20132014 2014 ? Circumstances — so that all deci changing s io so ns adthat vice relate to emp was no longerloyee applica ben ble efits, (4 percent wheth er of m workers ade in Cong and ret ress irees or bo ). ard rooms or As prior iterations of the RCS have shown, workers who have done a retirement savings needs calculation tend to AbContact EBRI out what you expe ctPublications, (2 ed 41%   02) 659-0670; 32%   fax publication 58% orders to (202) 775-6312. One of the primary vehicles that workers use to save for retirement is an employer-sponsored retirement savings plan, Don't know 39%   22% increase increases retirement Figure 39, Expectations Ab repr with pla en shousehol entation, , whether 1998d a 19 an inc c 9out Retirement Health Care 9e ome, IRA, ll 2phon 000 defined leve 20e 01su l 20 of pplement 02 contributio savings 2003 2 0was 04 ann d 20 , a i05 o n Ex dr v ded estments, de 20 penses 06fined to 20th 07 ................................................................. e benefit 2sa 0education, 08mple. 2009 plan, Startin 2010 are an20 d 11 g m im with o20 proved re 12likely the 2013 hea 2tha 0 200 14l1 tnh wave those status. of without .............. 31 the Not RCS, those all 34%   39%   Figure 6, Worker Confidenc they will have enough $1 mon 0,000e– e in Having y. $24, Wh 999 ile nearl Enough Money to Take Care of Medical Expenses in Retirement y half 16 of all w14 orkers 12 (48 per8 cent) w8ere no 12t too 12 or not 12 at all confi ................. dent of 10 Sour Sour cece :  :Em   Empl ployee oye eBe  Be ne nefifti tRe  Res seeaar rcchh  In  Inssttititu utte38% e  an and d     GGrreen eenw waalld d  & &  Ass Asso oci ciat ates, es,  2014 2014  Re Rettiire rem meenntt  Co Connffidideen nccee  Sur  Survveey ys.. 66 perc families’ ent in 201 ho Sourm ce 3), :e   Empl s, altho oy are ee Be ubased ne gh fit Res nearly ear con the highe h Ins t8 itutin e and 10  Green (7 w9 st ald perc & qualit  Assocen iates, y, t)  Inmost depe cful ., 1991 l-tim –2014e  Rew tire nda o mrkers entbl  Con e fidsay informatio ence Sur tha veyts .they n. EBRI’s Web or their spouse site have post s In Current anoth ? A retirement er siexpectations zable perc savin entag g ga s p, e tax of the pr wor efer RCS kers enc has report esconsistently encoura they g have e s fo ound me virtua to that lly save work no in savi ers anngs emp areand far loyer investmen more -spons likely ored ts. to Among pexpect lan whR o to Cmi S work ght workers for pay Less than 10 yeaSubscriptions to rs 10 to 19 years EBRI Issue Bri 20 to 29 ye efs arsare included 30+ years as part of EBRI Don' membership, or as part of t39%29% a Source:  Employee Benefit Research Institute and Greenwald & Associates, 1993–2014 Retirement26%  Confidence Surveys. ? Higher-than-eSo xupect rce:  Employ ed cos ee Betne o fitf  Res livi earc ng h In (st9 itut perc e and Gr ent). eenwa ld & Associates, 1993–2014 Retirement Confidence Surveys. 24% report higher savings So goa So urur ce: ce l  s :Em   Em than pp lolo yeyee e Be workers  Benne efifti tRe  Res seeaarrccwho hh  I  n Inssttitut ituhave tee  an andd  G Grreen not eenw waalld done d  & &  A Ass sso o ccthe iiat ates, es,   199 1993 calcu 3– –2014 2014 lation.   Re Retitrireem meennIn tt  Con  Co this nfid fideen ncceyear’s e  Su  Surve rve ys. ys. RCS, 29 percent of workers 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 such as a 401(k). Indeed, 70 percent of 16% employed 2 to 4 years befwork ore youers  retire (45 d percent of all workers) report they are offered such a plans surprisingly, Orders/ to repor wto havin rkers gemploy So sua rce: ve   Em d p ed ( lo90 yeefull  Be perc n etime fit Re ent se aar rcv h e s In. smore ti20 tute an perc d  conf Green ent wident a) ld.  &The  Asso tha ci aproporti ten s,  1998 those 7% –2014 on employ  Rehavin tirement ed g Co nsav fipar denceetd  Su time, rfor veys.reself-em tirement 32 ployed, also increa or ses as data The majority ar ? e Getting weig(56 hted better perc by ent) age, advice of sex, retirees somewhere and ed re uca por else tt ion havin (4 to percent rg e fl sp ect ent th of $1, e work actual 000–$ ers pro 9,9 and p 9ortions 9 9 on perc hea in ent lth the of caad re retir ult ine the population. es). past year. Data Fifte for e n waves having enough money for retirement in 2013, 43 percent report this level of confidence in 2014 (Figure 1). Figure 40, Worker Confidence That Social all research findings, publications, Security W and ill ne Continue to Pr ws alerts. EBRI also exte ovide Benefitnds s of at Least Eq knits e ow/Rd efu used cation ual Value to 3725and public service done so. Here again, participation $199 annual sub in a retsicription rement to pla EB n RI Not mattered: es and 90 EBRI Issue percent of Brie wor fs. kChange of ers participat 5 Address: ing in EBRI, a Figure 7, Worker Confidenc otherwise not do so. In fact,e in Having many of thos Enough Money to Pay for Lon e who would reduce or elimi g-Term Care nate their pla .................................................. n contributions maintain that they .. 10 in retirement providi th nan g this retirees $2 type 5,000 o ar –f$4 e in9, to form 99have 9 ation, act 13 u 3ally 6 perc work 13ent ed. say 11 Th th e ey perce 6have ntage less 9 of tha workers n 9 $1,0080 pl annin (up 13 fro g m to 28 3 wor percent k for pay in i2 n013 ). Source:  Employee Benefit Research Institute and Greenwald & Associates, Inc., 2013–2014 Retirement Confidence Surveys. 7 who have done a calculation, compared with 15 percent of those who have not, estimate they need to 43accumulate at Somewhat more than you expected plan with their current employer, and more than three-quart 7% ers (77 percent) of eligible employees (34 2 percent of all 6% 6% 8% of income perce unemployed, then RCS t or say e co d th u nducte as ey cation are spent d marr lebe vels less for ied ri e tse h workers 2 an 0or 0$1,0 1h hav ealth (com 00, e been status wpared hile wei 15 improves with g percen hted tho to . s t e Ot report allow not hermarr for grou spe co ied). n ps ding nsistent more $10,0 licomparisons kely 00 to or have more. ; saved conse (Fourte fo quent r en retirem perce ly, some e nnt t of in data clude in role to improving Ameri 1100 13th St. NW, Suite 878, Washington, cans’ financial knowledge through its a DC, 20005-4051, (202) 659-0670; fax number, ward-winning public se 35rvice campaign ? Wanting to make sure they have enough money to re tire comfortably (8 percent). So Sou urrce: ce:     Em Emp pllo oyye ee e  Be Ben ne effiitt  Re Resse ea arrcch h  In Inssttiitut tute e  an and d  G Grreen eenw waalld d  & &  A Asso sso cciiaatte es, s,  2014 1994 –Re 20t14 ire m Reetnirte  Co mennfitd  Co encnefi dSurv enceey  Su . rveys. Benefits Received Today ................................................................................................................................. 31 retirement plan had saved for retirement, compared with just 1 in 5 of those without a retirem 19 ent plan. retirement would The actual conti However, no reti nuw e rement to stan tsave hose ds 1993 age at the who 1994 65 reported same 19indicat percent, 95 1996amount 19 e by 97 they co 19 retir 9mpared 8 in a 19 ees n 99total d 20their has 00with by 200c1spouse h savi 20 jan u02st ged ng 2027 03do teven h 20 percent e 04namo o 20 t 05 more have 20 u 06 of nt 20 slowly, rthey a e 07tirees ret 2008 ino re 20 but ment wh 09 long 20 o it 10 er re has plan 20port save 11 ref 20 (ei 12 they liecte tn 20 her 1th 3 d worked 20 e a14 a n plan di IRA, ffer somewh for defin ent pa e y d e in re else Subscriptions ® 5 to 9 years before you retire d 11% Forty-thr Figure 8, Retiree Confidence Again, least $1 m mil ee any lio percent on f for those retir o fwho plan eme w nt. participants o in Having uld At rth educe e oth En also o er rough Money to Take Care of Basic extr elimi say eme, n that ate 17 hav thei perce ing r pla th n ne t contr fina of tho nci ibu sal e tions who services as Ex have a pen r co e done su ses in Retirem mpany lt of a tcalcu h th eat elimi lha atient ndles o nn, ation ..................... compar thof eir the ed with 11 $50,000–$99,999 7 9 6 11 8 9794 16 14 workers) Retiree con say fidence they contri about but haeving money a (202) 775-6312 financi to thei ally r employer’s secure ; e-mail: retirplan. ement subs criptions@ebr has also increase i.org d. Me Twmbe enty-eight rship Information: percent are Inquiries very married workers ChoosetoSave (compared with and ththe ose co not mpanio married), n site tho ww se w.c age hoo 45 set and osav older e.o (compa rg red with workers age 25–44), and the retirees 2014are RCS unmay able di to ffer estima slightly te ho wit w h muc data h tpubl hey ished spent in on prev these ious exwav penses es of in th th e e RCS. past D ye ata ar.) prWhi esente le 48 d in perce ta bles nt of in reti thisrees 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Worker confidence about having enough money to pay for me dical expenses and long-term care expenses in retirement 42%   34%   (75 retirement percent). rea A lity. much In 1991, smaller only perc 8 enta percen ge tstate of re32% they tirees    wo said uld they reduc retir e th ee d tafter otal amount age 65. tThis hey save perce(1 nta 4 ge perce is 1nt), 6 perce whiln e t an in retirement Retirees contributio (Figure n 35). , o Sour r defin ce:  Employe ed ebenefit  Benefit Reseplan arch In) stitar utee  anfa d Gr r eemore nwald & A likely ssociates,t h 1993– an 201 thos 4 Rete ir ew meh nto  Cohave nfidence  a Surplan veys. to be in this category question Figure 41, Retiree Confidenc wording and question e That Social order, and screenin Security W g. Wh ill Continue to Pr ile attempts are ovide Benefit made to mini s of at Least Eq mize th34% ese faual Value to ctors, it is Retirement confidence is strongly rregarding elated to EBRI retirem membership an ent plan partici d/or con patito ributio n, wh ns ether to EBRI-ER in a defi F should be dir ned contribution ected to plan, EBRI employer 37 percent mat whco h have and th not, e ch th ange ink they in tax nee trd eatment to save mainta less thin an that $25 they 0,00 0would for retirem continue ent. to Consistent save the w saith me pr amount ior RCS in fintotal dings, retirement plan give them recommendations as to how much to withdraw from their plan each month to help savings Whil Confidence e respons in Other Financial Aspects of Retirement es to a question Muc asking h more the than yo age u exp at ectwhich ed work 5% ers expect to retire shows little change from one year to confident ? A sizabl about e havin percentag g enoe u gh of wor money kers to report live comfort they have ably vithrou rtually ghout no savi their ngs reand tirem inve ent stments. years (up Among from 18 RCS percent workers in report Figure 9, Retiree Confidence those report who t may his lev hav noe t e l total of attem spe to p n100 ted ding a due is in Having retirem abo to u rou t ewhat nt ndi En sa ng ough Money to Take Care of Medical Ex vings they and/or ex ne pecte eds mis c s dalculation ing , 30 cat perc egori ent (co es m say . pared it is w more ith t p h than enses in Retir ose w expected ho haveement and not)14 . ................. percent 11 Sources of A The fina per ncial centa rati ge Retirement Income onale of income for Sourwork ce:  Em thping at loyesome e in Benr efe it tirem Re work searche ers  Innt stituis report te an ev d G en reen nmor w eaeds ld &e  A sso to import c iabe tes, 1993 saved ant –20to 14 to Re workers. tirensure ement Confia d Amo en c ceo  Su mfortable nrvg eyt s.hose who retirement expect may to wor seem k for remains well below th$1 e 00, confi 000d –$ enc 249, e9 99 level o17 bserved 10regar15 ding payin 12 g for 12basic 10 expense 11 s. Whi 16 le 3 4in 10 workers are very 10 to 19 years before you retired 27% President Dallas Salisbury at the above address, (202) 659-0670; e-mail: salisbury@ebri.org 201 even 4 small (statistic (73 epe r percenta ally rcene t qhave uival ge say ent less with they than the woul $1 ,1 00 d 4 0 st percent save op savin d vs. measur g 1 that 1 ped eamount rce in n20 t of 13 altogether t) hose (Figure who (8 3have 3). percent). Th ae retir medi em an ent (mi plan dpoint) ). Inc age ome at is w also hich a impossible to quantify the errors that may result from them. Workers Benefits Re with some sort ceived Today of retirement ....................................................................................................... plan, whether through their employer or an IRA, have signific.......................... 32 antly 11 more in defined benefit plan, or IRA. Workers reporting they or their spouse have money in a defined contribution plan or IRA and Workers Retirees by despite saving investmen hi ten who gh thd e er have to amount t savings last express save throu th goals d ey hi g fo gher hn r o ,o retirem ut workers longer lretir evels e ement save nt who of generally co in have nfidence woul the d don plan be have e tha ver so a n not r y mewher e worke valuable. tirement done rs e so abo else savi Fo fou rty-five r t ngs (77 their eac percent). nh e ent eds of pe ircen the re cal cs areers. c t e Only ulation think finaa ncial it small Only are woul as m 35 pects minority d ore percent be like some of lretir say y of to wha e tworkers fe h ment, ey tel very EBRI is supported by organizations from all industries and sectors that appreciate the value of another, 2013) and th39 e lopercent ng-term ar tren e so d mewhat shows that confi th de ent. ag e At at the whi sch ame work time, ers 17 plapercent n to retire say has they crept are u not pwar at dall over confident, time. In and providing this type of information, 36 percent say they have less than $1,000 (up from 28 percent in 2013), indicate it is less (7 percent say they do not know). pay unlikely, in retir but em ite may nt, 8not 1 perc been far t indicate afield from they what will n th eed ey act the ua money lly think to th mak ey e nee ends d. The meet, averag and e th amoun ree-qua t rters individu 40 (74 als perc reported ent) Almost confident all abo retiu rees t payi who ng worked for basic for expenses, pay in refar tirement fewer in ar e thvery e 201 co 4 nfi RCS den give t abo a upos t bein itivg e abl reas e on to for pay doi for ng medical so, sayin expe g they nses Figure 10, Retiree Confidenc W Whil orkers e the majority of retirees e in Having (89 percent) Enough Money to Pay for Lon report that Social Security provides g-Term Care a sou ................................................ rce of income for their and their .. 12 retirees report they retired has remained at age 62 throughout this time. key factor; 68$2 perce 150, 993000 199n 4 t or 199 with  Mo 5 19r9e6h1o 99usehold 7 199 15 8 1999 inco 200 12 0 20 m 01e 200 of 12 2 less 2003 200 tha 17 4 20 n0 5$200 35,0 1 652000 702 00 a 17 8 y 20e0ar 9 201 17 hav 0 20e 11 savin 227 012 201g 3s 24 01 of 4 less than $1,000. Of savings Saving or have and s and a defi investments ned Investment benefit tha plan ns do from those a cuwit rrent hout ora previo plan (Figur us employer e 21). Furt are hermore, more than o n tw aice househol as likely d lev as e those l, these witho wou rkers t any and would confident sev reduc eral abo co e u the nfidence t affordi total n amo in g dic a unt comfortabl ators they have save e inc retirement (7 reased percent in (25 20 ) or 1percent 4woul . The d perc sto vs. pent 13 saving age percent o that f rewho tirees amoh unt ave very alto not con geth don fiden er e a (10 t of calcul perc havin ation ent g en )).. ough valuabl In 55 theory, and unbiased, reliable information on emplo e, olde w the hil r ind e wei 1i1 cate g perce htethe d nt sam y have indicate ple of save 1,0 it d woul 00 for w d 30 obe rkers yenot ars yields too or y longer, o ee b a r not statistical enefits. at althou all val pre gh Vis uable cision an additiona it (Fi www.e ofg pl ure us b l30). or 34 ri.ominus percent r g/about/join/ 3.5 report percenta for more. havige ng poi saved nts for particular, Figure 42, Worker Confidence That Medicare Will Continue the percentage of workers who expect to retire aft to Provide er age 65 Benefits of at has increasedLeast Equal , from 11 peValue to Benefit rcent in 1991, to s another Editorial Bo although 14 percent ard:thos Dallas L ofe ret who . Salisbur irees indicat are y, publisher not e they 20too  yea ; Stephen Blakely ra sconfi  n ord  mo their re d ent. befor spouse eLik  yo , editor ue  re work tired do . Any not er views con have fexpr idenc a es ret sed in this p e, irreti ement reeublicat confidence plan ion and th (either in ose o a n having IRA, f the author defin enos sho u egh d uld 42% they want n to eed kee to p shealth ave incr insuran eases ce as or retireme other be nt nefits. confidence Nevert de heless, creases, work partic ers ularly give ot for her ol der reasons workers, as wel who l, saying have less they tim want e to to Respon (17 perce dents nt, swere tatistically also ask equ eid valent how they to 14would percent respo in 20 nd 13 if, ) in an ad dditio long-ter n to m the care Rot ex h pens change es (13 outlperc ined ent ab,ove, statistically employers no did so because they enjoyed working (83 percent) and wanted to stay active and involved (79 percent). However, The RCS was co-sponsored by the Employee Benefit Research Institute (EBRI), a private, nonprofit, nonpartisan public spouse’s retirement (62 Sour cperc e:  Employee ent  say Benefitit  Re is seara ch  major Institute ansource d Greenwaldof  & Ass incom ociates, e), 2014  Re wto irerkers ment Conand fidencethe  Survey ir . spouses continue to expect to Preparing those who for Retirement have saved for retirement, only 38 percent report savings of less than $25,000. Confid Confidence ence th abat out Social some * Ha Sec oth s Reu tie rrity em r efin ntwil  Plancial anl  deconti fined asp  asn  reue se pon cts to dent of provi  or sp re outirem se d e havbene inge  at nt  lefi aalso sts t oneth  ofrebo  at the fa ollre u ow nde ing at : IR d least A, sli DC g plahtly e n,q  oru  DB al fr  pla om to n  to the day’s lows value measured is higher in 2 among 013. tend Figure 11, Retiree Confidenc not be to hav ascribed to the officers, e retirementSo savi urce:  ngs Emp e in Financial trust loyee in ees,  Be multi nefim t Res em p eab le rers, or ch Preparation fo  vehicl Instituteother sponsors of the E  aneds.  Green Tw walo d - r Retirement &thir  Assocds iates,(66  1993– m201 per ploye ......................................................... 4 Ret cent) eir Benefit Research ementof  Confthose idence Survwith eys.Institute, the EBRI Educ money in an emp ............... 12 ation and loyer- of these plans to be very confident (24 percent with a plan vs. 9 percent without a plan). Moreover, the increase in (wit money 20 to h 9 25 9 to perc years pay efor . nt Half certai basic (52 nty) eperc xpe onses fent) what has of th those inc e re re sults ages ased wou 45 signifi to ld be 5 ca 4n isay tly f alsince l they Ame hav the ricans ela saved st ag RCS, e 2for 5 from a at nd le o 28 ast ldeperc r 20 we ent years re su in rve (Figure 201 ye 3 dto w16). i39 th c pRetirees o emp rcent lete 21 A Confidence money sizabl percfor ent e Received Tod perc reti in entage 200 in Entitlement Program rement 4, 31 of *has  ay U. perc wor S. Dep ................................................................................................................ va ak ent rried ers tmenitn  have of over  2 Labo 00 r.9 vi th , rtually e and history s 33 no pe of mone rcent the y RC in in th S, savin e thou 20g 1gh s 4 aR n tC he d S in (statistical con vestment fidence s. ly expr Among eques ivalent seR d CS by ............................... 33 t oworkers t hos the e 36 alre p provi eady rced nt iing n this contribution, or defined benefit plan) are far more likely than those who have a plan to be in this group (73 per- save. stay active In fact, and workers involvea d g(90 e 45 perc or o ent lder ), who and enjoy are not workin at allg confident (82 percent) abou (Figure t having 37). eno ugh money for a comfortable T longer financi equival his di al ff made ent erre en asons to ce matching 11 be perc also twee ent play n cont w in o aributions rke 201 role r3). s’ in ex Nevert that p to ected th decision, e heless, plan; retiremen 41 the such per pe t ag as rcentage cent e want an of d ing plan retir s of mon eparticipants workers es’ eactual y to buy who age in extr are di ocate fas retir not (5 th at e 4 ey ment perce alwo l c o suggests ul n nfident d t), conti needing about nue that to mo a payin ney gto policy research organization; and Greenwald & Associates, a Washington, DC-based market research firm. The 2014 draw Resear their ch Fund, retirement or theirincom staffs. Nothin e from g her a e wide in is to be co variety nstr of ued as an attem sources. (Soci pt to aid or al Se hi curity nder the adoption is the federal of an ypro pending le gram gislat that ion, provides regulation, 22 Just workers 21 percen ages 45 t of an plan d older So upa rce:rtic   Em thploy an ipants eeamon  Benefi in t Re dic g seyo aate rchunger  In stheir titute  an work dem  Green ploye ers, wald &an r’s  Assod retir ciaretir tes, e 2004 ment ees –2014 are  Re savings tirmore ement Copl nlikel fidan ency eo  Su than ffers rveys. worker them as n overall annuity too p be tion, Twenty-nine percent of workers are now very confident that they will have enough money to pay for basic expenses sponsored Target Setting confidence pla betnw report een 20th 13 ey an or d their 2014 spous occurr eed also primari Doh nave 't knoly w m  /a  o Re m ney fus ong edinv thos ested e win ith an a pla IRAn (whi (an ch increas may ehave from originat 14 9 perc eent d as va ery in 2014, although still below the recent high of 48 percent found in 6% the 2007 RCS. At the same time, 11 percent accuracy. typically reThere port hare aving other saved possible for retirem sources ent of for error 20 years in all (midpoi surveys, nt). ho wever, that may be more serious than theoretical observed Planning by in 2013 Workers ) (Figure 32). Additionally, 1 in 10 in the 2014 RCS (10 percent, up from 7 percent in the 2013 RCS Figure 12, Worker Confidence in Preparin retireme type o ? f in cent Cost nt form has vs. of ation, ten livi 11 n dg percent). ed 6and 0to perc o day-to uent t p Moreo ace re -da port th v yat er, ex toh penses 68 fa tg Financially f th percen the ose he tota still ad t l with in val thte h u or Retirement e househ e list wo ofof th rkr force. eir ol easons d household’s income I.......................................................... t why remain o workers f less ed savi fai than ngs rdo ly an steady $3 no d 5, t in 000 save vest at a ments, ( ror o ye ughly ar save ha exc 40 ve more) ............... 13 ludi per savings n c for g ent tho e f retireme or interpretative nt think they rule, or as nee legal, d to acco save unting, almost actuarial, o half (4 r other such prof 8 percent) o essional advice. f their total ww house w.ebri. hold orgin come, on average, 18 from now until considera contribut for Figure 43, Retiree Confidenc medical eb le wh ex gap at pens they ex es ists do (24 betw no pe w, rcent, een e That Medicare Will Contin and workers’ down one-qu frarter expectatio om 29 (24 percent perc ns an ent) ue in d ret to Provide 20 say 13 irees’ they ) anexperienc d would Benefits of at long-t inc erm ereas . Ju car st e e Least Equal the 9 ep x e pe amount rcent nses of (3 they Value to Benefits workers 2 percent, contri say but do they ewn . One from plan One make reen ason ds me that et workers (52 percent may ), be a de less crease likelyi n than the retir value e es of to their expect savin to g s re oceive r investments income from (38 p Social ercen S t), e curity or keeis p in bec g h ae use alth RCS data collection was funded by grants from a number of public and private organizations, with staff time donated by After income hesu arin ppo g trt he for estimat the age e, d 8 1 and percent disability indi cate coverage they w for ill e cont ligibinue le workers to contribut and the e what ir depende they do nts). no w, just 9 percent would although durin confident g retirem n abo earl uent y t a the thir (up fut d from u (31 re value percent 25 percent of )Soc don’t in ial 2 Security know. 013, but benefits still below . Fourteen the 40 p percent ercent measur of retire ed es in say 20they 07). a Are t the very sam confident e time, Although rollover from the an percentage employment-based of retirees v plan ery ), c oand nfident 53 perce that tnht ey say hathey d done ha ve a goo retir de job ment of savings preparin in g addition for retirement to mo ney fell from in confident in 2013 to 24 percent in 2014 for those with a plan, compared with level readings among those without a calculations continue to be of samplin not at all g erro confr. ident These abo in uclu t pa de ying refusals for basic to be expenses intervi ewe (Fid g ure and 8). other forms of nonresponse, the effects of b Their very value ut le confi ve sense ofretirement, l th w deir ie th nt of primary th savings and e 10 1 wi 0p th hom e perce short r53 cee npercent t f nt and all ob not not se ar n at w vy of ed ithstan def all work in co in 20 e nfid d ers d 0 ing, ben 9) ent citi sa many eng from fit y th pla this e w y 2 n 002 o s, n factor. rker eis ver throu less s plan continu tha gh to n 2 007, e retire. $25,0 to be but 00. Nev una th Th e e wa rth is p e re inclu ercenta leof ss, des how the ge 36 muc v median eperce ryh confi they n(midpoint t d who ent need s da eto y cline ) they age save d less than $1,000. Of those who have saved for retirement, only 38 percent report savings of less than $25,000. they retire (Figure 20). Not surprisingly, those who are not confident about their retirement prospects are also more to Figure 13, Workers Having in confidence Worker insurance 39 1 retire perc 0 each ent confi Received Tod befor or states in is d ole 201 ence o ther w age 3) they inben t 60, h Socia in at ay woul e retir fits com thl................................................................................................................ ey S e d Saved Money (34 e p ment are curity’s re ared duc perc doin hav with eent) th a g eb e a ilit 35 de a (Figure good y m creased for Retirement percent to ount mainta job 3 th 6 slightl o of ey ). f in prepari reti co ty h ntribut rees .......................................................................... e (Figu cur ng who rent e rfinanc es to repo 6val t he aind ally u rt e pla 7). of they for n bene (1 retir r0 etired perc fits ement paid ent) that has to or early. r salso e top tiree ............................... 33 Eighteen c rebo o sntributi . Eight unded ................... 14 percent ng perc sli alt g ehtly. n ot gether of of EBRI and Greenwald & Associates. RCS materials and a list of underwriters may be accessed at the EBRI Web site: Source:  Employee Benefit Research Institute and Greenwald & Associates, 2011–2014 Retirement Confidence Surveys. delay retirement based on the estimate, and 62 percent say it does not affect their confidence in their ability to save about the futu EBR re I Issu value e Brief of So is r cial egister Seed in the U. curity benefits S. Patent and T (Figure radem 41). ark Office. ISSN: 0887 ?137X/90 0887 ?137X/90 $ .50+.50 39 16 perc percent ent a in re 200 not 7 at to all 26 conf percent identi n abo 200 ut 8, th it eir has abrility emaine to pay d stea for dy basic since ex penses that timie n a re nd tir stands ement ( at unchanged from last year) 29 percent in 2014. plan their of employer 10 perc’s ent plavery n an conf d anident IRA. in Moreov 2013 er, and the 9 perc vast ent main jority 2014). (83 Addi perctionally, ent) of worker workers s with without a defin a pl ean d ben are efit four pla tin mes as at which workers expect to retire has remained stable at 65 for most of this time. for have in 20 retir 08 less ean ment. than d 20 0 $1, Less 9 (F 00ig than 0 uin re savi half 2). ngs of workers (up from (44 20 pe perc rcent ent ) in report 200 th 9 they and a28 nd/o per rcent their in spouse 2013). have ever tried to calculate how likely to say they do not know how much they need to save. As one might expect, the percentage that workers report workers (12 The perce percplan enta nt) (Figure ge to retire very 25 co between ). nfi dent, th wh e ich ages re m ofained 60–64, at alt rough houlgh y 25 32 percent percent betw of re een tire es 2003 reti and red in 20t 0hat 7, de ag cline e ran d ge. to 17 On percent the workers are very confident that the Social Security 1100 13 system St wreet ill conti NW · Suite 878 nue to provide benefits of at least equal value to http://www.ebri.org/surveys/rcs/ enough ? Cos to live t of comfortably living and day-to in retir -da ement. y expens Nevert es he heless, ad the th lis e t lar of greasons e majority why of workers those who do not were save provided (or 28 save with more) this for Figure 14, Retirees Having (Figure 5). Saved Money for Retirement ......................................................................... .................... 14 Another through the 4 in ir 1current 0 (40 p e or rcent prev ) ious are some employ wha er t also confi hav dent, e m ro oney ughly in the an em same ployer leverl eas tirem in 2 e007. nt savin That gs said plan. , 20 percent of Washington, DC 20005 retirement, with 53 percent of workers citing this factor. (202) 659-0670 © 2014, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Bri Issue Brie 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 e e efffffffffffffffffffffffffffffffff • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • March 2014 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 • No. 397 33 30 20 19 18 22 27 29 11 17 28 26 15 14 16 24 13 34 10 23 21 25 31 12 32 2 8 9 3 6 4 5 7 www.ebri.org www.choosetosave.org A monthly research report from the EBRI Education and Research Fund © 2014 Employee Benefit Research Institute

Volume 397

Pages 36

EBRI Issue Brief

Ruth Helman

Nevin Adams

Craig Copeland

Jack VanDerhei

Retirement