The Employee Benefit Research Institute recently released its annual Retirement Confidence Survey for 2010 that that the record-low confidence levels measured during the past two years of economic decline appear to have bottomed out. The percentage of workers very confident about having enough money for a comfortable retirement has stabilized at 16 percent, which is statistically equivalent to the 20-year low of 13 percent measured in 2009. One of the more troubling results of the survey shows that An increased percentage of workers report they have virtually no savings and investments. Among RCS workers providing this type of information, 27 percent say they have less than $1,000 in savings (up from 20 percent in 2009). In total, more than half of workers (54 percent) report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.
Sentiment about having a financially secure retirement has also stabilized according to the survey. Some of the other notable statistics include:
- 29 percent now saying they are very confident about having enough money to pay for basic expenses during retirement (up from 25 percent in 2009, but still down from 34 percent in 2008)
- Just 19 percent of workers and 22 percent of retirees report they are very confident about banks, while 12 percent of workers and 13 per-cent of retirees say they are very confident about insurance companies (Fig. 19, pg. 19). They are most likely to express confidence in private employers (23 percent of workers and 27 percent of retirees very confident) and least likely to feel confidence in the federal government (11 percent of workers and 8 percent of retirees).
For the full report, visit the Employee Benefits Research Institute 2010 Retirement Confidence Survey.