Workers' Confidence About Retirement Security Falls to Record Low in U.S.

[Purveyor]

Source: Bloomberg

By Alexis Leondis

April 14 (Bloomberg) -- A record low percentage of workers and retirees are very confident about being financially secure in retirement, according to a survey released today.

The survey of 1,257 individuals in the U.S. found that 13 percent feel very confident about having enough money to live comfortably in retirement, the lowest level since the Washington-based Employee Benefit Research Institute started asking the question in 1993. Retirees who feel very confident about continuing to be financially secure in retirement also decreased to a new low of 20 percent from 29 percent a year earlier.

“Retirement confidence tracks the economy and this year we’re seeing results that are directly calibrated to the economic uncertainty,” Daniel Houston, an EBRI board member and president of retirement and investor services at Des Moines, Iowa-based Principal Financial Group Inc., which sells life insurance and 401(k) plans, said in an interview.

Confidence among workers and retirees is waning as a 45 percent drop in the Standard & Poor’s 500 Index has erased more than $2 trillion in retirement assets since October 2007. Congress and the Obama administration are evaluating retirement savings vehicles, such as 401(k) plans.

Employees are planning to work longer because of the recession, according to the survey. About 28 percent of workers said they had changed their retirement plans in the past year. The number of employees who will work for supplemental income after retirement increased to 72 percent from 66 percent in 2007.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aalioI1L1WoQ&refer=us

[JDPriestly]

1. "Employees are planning to work longer . . . ."

But, employers are planning to have them work a shorter time. What's wrong with this picture? It's fine to plan to work longer. Many retired people would like to be working -- at least part-time. But it is very difficult to find a job, and the better qualified you are, the more difficult the search can be.

[spinbaby]

2. It varies with the individual and the job, too

Some jobs--steelworker and road contruction, for instance--are very physically demanding and people working in those areas really need an earlier retirement. Also, people wear out at different rates. Our system needs to address this variablility so people that need to retire early can, and people who want to keep working don't get forced out of the workforce.

[gizmo1979]

3. Well duh.

Have they gotten their 401k statements lately.I don't even want to open mine up.