NEWS FROM THE EMPLOYEE BENEFIT RESEARCH INSTITUTE • Debt is challenging retirement preparedness - Nearly half of workers say debt has negatively impacted their ability to save for retirement. More so than last year, over 1 in 4 retirees say debt has impacted their ability to live comfortably in retirement. Results of New 2022 Retirement Confidence Survey Finds Americans Remain • Many Americans don’t know where to go or who to trust for financial and retirement planning information Optimistic About Living a Comfortable Retirement - Almost 4 in 10 workers and 2 in 10 retirees say they don’t know who to go to for financial and retirement planning advice. Many turn to non-professional sources, like family and friends (35% of workers and 21% of retirees) or go online to do their own research (29% of workers and 23% of retirees). - However, a third of workers and half of retirees who feel less confident cite inflation • Workers remain satisfied with their workplace retirement savings plans and with the tools and resources and the cost of living as reasons for their declining retirement confidence - available - More than 4 in 5 workers who are offered a workplace retirement savings plan are satisfied with the benefit. This is important given that workers (82%) remain far more likely than current retirees (47%) to For immediate release: 4/28/22 expect their workplace defined contribution retirement plan to be a source of income in retirement. For more information: Ron Dresner • Workers envision a gradual transition to retirement and retirement funding that includes work for pay - dresner@ebri.org The median expected retirement age for workers — age 65 — and the reported retirement age of retirees — age 62 — remains unchanged. However, workers anticipate a gradual retirement transition to retirement and (Washington, D.C.) – American workers and retirees remain optimistic about living a comfortable retirement, to work for pay in retirement, which doesn’t match the experience of most retirees. Though down from last despite the impact of the pandemic that has lasted for over two years. However, inflation and the cost of living are year, over 4 in 10 workers expect to gradually transition into retirement. Only 17% of retirees report having a cited most often as a reason for feeling less confident in their retirement prospects. Workers want to focus on their gradual transition, while 73% say their retirement was a full-time stop. retirement savings but face many challenges, in particular debt. • Most retirees report their overall lifestyle and expenses are as expected. However, up from last year, over 1 in 3 find overall expenses to be higher than expected - Four in five retirees report that their overall lifestyle nd These findings are just a portion of the new 32 annual Retirement Confidence Survey (RCS), which is the longest- — including traveling, spending time with family, or volunteering — is as expected or better. Over 1 in 4 say running survey of its kind measuring worker and retirement confidence and is conducted by the Employee Benefit their retirement lifestyle is better than they expected. Research Institute (EBRI) and Greenwald Research. • Workers’ confidence in Medicare and Social Security holds, but retiree confidence in Medicare declines - Three-quarters of retirees and two-thirds of workers feel confident they will have enough money to take care “Even with the concerns of the pandemic and rising prices, overall, American workers and retirees still feel positive of medical expenses in retirement. about their retirements,” said Craig Copeland, director of Wealth Benefits Research, EBRI. “The Americans who are more likely to feel that their futures appear grim since the pandemic are those who were already pessimistic about nd The 32 annual RCS report can be viewed by visiting www.ebri.org/docs/default-source/rcs/2022-rcs/2022-rcs- their futures, due to lower incomes, problems with debt, or lower health status.” summary-report.pdf. The survey of 2,677 Americans was conducted online January 4–26, 2022. All respondents were ages 25 or older and included 1,545 workers and 1,132 retirees. This year, the survey included an oversample Retirees report that their lifestyle and spending in retirement for the most part are as expected, but slightly more of roughly 807 completed surveys among LGBTQ individuals (639 workers and 168 retirees). A report highlighting the than 1 in 3 suggest overall spending is higher than expected. This is an increase in those reporting higher spending, survey results of the LGBTQ community will be published in June 2022. compared with the one-quarter who reported higher expenses in 2021. Furthermore, compared with 2021, a larger share of retirees suggest spending on housing is higher than expected and more indicate that spending on travel and The 2022 RCS was made possible with support from American Century, American Funds / Capital Group, Ayco, Bank leisure are higher than expected. of America, Blackrock, Columbia Threadneedle, Empower Retirement, Fidelity Investments, FINRA, Jackson National, J.P. Morgan Chase & Co, LGIMA, Mercer, Mutual of America, Nationwide, NEFE, New York Life, PGIM, PIMCO, “This could reflect increased use and desire for travel and leisure as the pandemic lulls. It can also reflect inflation Principal Financial Group, Retirement Clearinghouse, T. Rowe Price and the US Chamber of Commerce. and the increased cost of travel and entertainment for some,” said Lisa Greenwald, CEO, Greenwald Research. “While it is hard to know which reason is driving the higher expenses, a strong majority of retirees still feel their Greenwald Research is a leading, independent research firm that has been specializing in retirement, employee retirement lifestyle and spending are on track.” benefits and health care research for over 35 years. For more information, visit www.greenwaldresearch.com. Key findings from the 2022 RCS include: The Employee Benefit Research Institute is a non-profit, independent and unbiased resource organization that • Americans remain optimistic about living a comfortable retirement - Over 7 in 10 workers are at least provides the most authoritative and object information about critical issues relating employee benefit programs in somewhat confident, including almost 3 in 10 who are very confident. Retirees also remain confident, with the United States. For more information, visit www.ebri.org. nearly 8 in 10 confident they will have enough money to live comfortably throughout retirement, including 1 in 3 who are very confident. # # • The pandemic’s impact has been more muted for retirees’ than for workers’ confidence -Nearly 7 in 10 retirees report that the COVID-19 pandemic has not changed their confidence in their ability to live (MEDIA NOTE: The survey report can be viewed online by visiting www.ebri.org or comfortably throughout their retirement. However, only half of workers report this. • Having saved bolsters retiree confidence — but inflation fears are eroding it - Almost three-quarters of email dresner@ebri.org to receive a copy). retirees who feel more confident in their ability to live comfortably through retirement since COVID report it was due to having money in savings or having good investments. But half of retirees who feel less confident state it was due to inflation.