Americans’ confidence in their ability to retire appears to be stabilizing, according to the Employee Benefit Research Institute. EBRI’s recently released 2010 Retirement Confidence Survey rebounded somewhat this year following record-low drops in public confidence in 2008 and 2009.
“Americans are starting to feel more optimistic about their financial futures and now is the time to back that up with action,” said Daniel J. Houston, president of retirement, insurance and financial services at Principal Financial Group, which underwrites the annual survey. “Get started by figuring out how much may be needed for retirement and create a plan to get there. Keep spending in check and make savings a priority.”
But preparation for retirement appears to be getting worse. According to EBRI, more than half of employees said that they have less than $25,000 in total savings and investments, excluding their homes.
According to EBRI, 46% of employees reported that they or their spouse have tried to calculate how much money they will need to save for retirement. As a result, 33% of employees now expect to work past the age of 65 – up from 11% in 1991.
“Working longer is one way to help fund retirement, but the research shows that a significant number of workers end up having to quit sooner than planned because of health issues or layoffs,” said Houston. “All the more reason for workers to give themselves more options by saving effectively in the first place.”
This year’s Retirement Confidence Survey was the 20th edition of the annual study — making it the longest-running such survey in the United States.
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1 Comment(s)
Posted by: melvin q | March 23, 2010 12:00 PM
To obtain an average retirement, regardless of your age, one should be saving at least ten times their salary. For example, if one is aged 50 and makes $50,000 a year, you should have saved at least $500,000 in some form or fashion. That does not include the value of your home, since regardless of your age, you need to have some place to live. If you have twenty times your annual salary, so much the better. If you don't, there are lots of articles that advise you how to save for your eventual future.
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