American Workers Insecure About
Retirement Savings & Jobs

The Retirement Confidence Survey, published by the Employee Benefit Research Institute, is the longest running retirement survey of its kind. It polls both workers and retirees on their perceptions of issues such as savings, job security and retirement, and the edition released this month revealed several troubling facts for American workers.

Retirement Confidence Remains Historically Low

The survey found only 14 percent of workers are very confident they will have the money needed to live comfortably in retirement.

Perhaps it is not surprising then that today's workers expect to stay employed longer. While only 11 percent of workers in 1991 expected to work past age 65, the most recent survey discovered 37 percent believe they will be working beyond that age.

However, some workers may find they have limited say in when they retire. The 2012 survey found half of current retirees left the workforce for reasons outside their control, such as disabilities or downsizing.

Retirement Savings Not a Priority

Workers may not feel prepared for retirement because many are not actively planning for it. Only 19 percent of workers feel very confident they are doing a good job preparing for retirement. Moreover, 56 percent of workers say they and/or their spouse have not tried to calculate how much they will need in retirement savings in order to live comfortably.

In addition, only 58 percent of workers are currently saving for retirement. Income appears to play a significant factor in whether a worker has saved money. Of those with household incomes greater than $75,000 annually, 93 percent have saved for retirement, compared to 35 percent of those earning less than $35,000.

For retirees, only slightly more than a quarter feel very confident they did a good job preparing for their retirement. Social Security is identified as a major source of income by 69 percent of current retirees.

Workers Insecure about Jobs

Even as the economy apparently recovers, many workers also feel insecure about employment stability. Of survey respondents, 42 percent cite job insecurity as the biggest financial issue facing workers today.

Workers may be keenly aware of their employment situation since many are apparently ill-prepared to face a period of unemployment. The survey found many workers have little, if any, savings. More than 60 percent of workers said they have less than $25,000 in savings accounts and investments. At the same time, 20 percent of workers say their level of debt poses a major problem.

Share your thoughts about this article with the editor: Click Here

Copyright 1996 - 2013 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.

Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
941-761-7805

"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

Also In This Week's Issue

• How to handle your parents moving in with you
• 7 tips for renters
• 9 reasons your credit card was declined
• Filing Ch. 7 on your own? Avoid these mistakes
• How to pay debt while improving credit score
• Avoid making this common investing mistake
• Life insurance from marriage into midlife
• Affordable life insurance after 50? Or 60?
• How to track unclaimed life insurance money
• How to quickly boost your credit score
• Why good manners can boost financial success
• When it's OK to tap your IRA

In The Dollar Stretcher Community

• Homemade smoothies
• Dollar Stretching Recipes: Slow cooker refried beans

Reader Favorites

• Natural homemade shampoo
• Homemade cat food
• Removing pet urine smells
• Cheap dates and family activities
• Auto loan prepayment penalties