U.S. Worker Confidence in Retirement is on the Rise

The results are in! A recent survey by the Employee Benefit Research Institute (EBRI)1 found that two thirds of American workers feel confident in their ability to retire comfortably, which is up from 60% in 2017.  However, confidence in the ability to retire is strongly correlated to participation in a retirement plan by themselves or by their spouse.  The confidence was generally the same whether the plan was a defined contribution (DC) plan, defined benefit (DB) plan, or individual retirement account (IRA).  Generally, 74% of workers that were in a retirement plan thought they would have enough money to live comfortably in retirement whereas only 39% of workers without a plan felt the same.

Worker confidence in their retirement and the security that it provides can result in a wide range of benefits, including increased moral, employee retention, lower stress in the workplace and higher productivity.  The survey results show that there is a significant divide between how workers feel about retirement and how positive they feel in their ability to save if their company sponsors a retirement plan.

1 The Retirement Confidence Survey (RCS) measures worker and retiree confidence about retirement and is conducted by the Employee Benefit Research Institute (EBRI) and independent research firm Greenwald & Associates. If you are interested in reading the survey summary it can be found here.

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