Survey: Americans' Retirement Hopes Filled With Holes

According to the Employee Benefit Research Institute (EBRI), a large majority of Americans expect to enjoy a comfortable retirement, but many have not taken the actions needed to turn their aspirations into reality and face the prospect of having to work far longer than they expect. Published as EBRI Issue Brief No. 292, Will More of Us Be Working Forever? The 2006 Retirement Confidence Survey, EBRI's 16th annual survey, suggests that many have accumulated only modest retirement savings, underestimate the share of their preretirement income they are likely to need in retirement, and have made no estimate of how much they will need to live comfortably once they retire.

By the numbers 24% said they are very confident they will have enough money to live comfortably in retirement, and another 44% said they are somewhat confident. Among the survey's highlights:

• 68% of current workers say they and their spouses have accumulated less than $50,000 in retirement savings--including 88% of those 25–35 and 52% aged 55 and older.
• 66% of current workers think they have some chance that they will live until age 90-—or spend 25 years in retirement, assuming they retire at age 65. However, 58% also think they will have less than 25 years of retirement and another 19% are unable to estimate how long their retirement will last.
• 59% said they hope to have a retirement standard of living equal to or higher than in their working years, but only 58% have actually calculated how much money they will need to retire comfortably.

An Executive Summary of the report is also available.

Source: Press Release EBRI (April 4, 2006)