Rising costs and uncertainly about the ecomomy have workers less confident in their ability to save enoungh money to retire comfortably , says the authors of a new study released the other day .
Even though workers are saving more and expecting to work longer to improve their chances of a happy retirement , there's still a disconnect . The survey shows many are falling to plan appropriately and making incorrect assumptions about retirement .
The new survey by the nonpartisan Employee Benefit Research Institute revealss only 13 percent of U.S. workers say they'll have enough money to retire comforably .
Another 41 percent of workers said they're somewhat confindent of having enough savings for retirement , down 2 percent points from the year before .
Only 20 pecent of the people already retired say they're very conffindent they'll be finanical secure . tha's just half of the 40 percent from the survey a year ealier .
Most surveys respondents said th economy was largely behind their pessimism .
Change in behavior.
With the dour mood about retirement prosects comes some behavioral changes that advisers and retirement planners say may be one of the positives coming out of the econoic downturn .
The survey shows 81 pecent of those who have lost confidence in having enough money to retire say they are spending less .
The survey also shows 65 percent of workers say they are currently saving money for retirement .
About half the workers in the survey say their household savings and investments total less than $ 25,00 excluding the value of their homw.
This signals a tremendous problem ahead.
Consiner that awoman earning $ 40,000 at retirement would need to have $ 203,134 in savings by age 65 to encure she could replace 80percent of her income in retirement , said Jack VanDerhei , one of the authors and the EBRI research director .
a man under the same age would need $ 190,138 .
Soures of Income
the U.S. Bureau of Labor Statistics said March that just 20 percent of private industry workers have a defined benefit plan . About 43 percent have defined contribution plan.
A disturbing factor for many investment advisers and retirement planners from ERBRI survey is that only 44 percent of workers say have tried to caculate how much money they'll need to have enough saved for retirement .
Another 44 percent said they simply guess at how much they'll neeed .
The survey is based on random telephone calls to 1257 people age 25 and older in January . The survey statistical margin of error is plus or minus 3 percentage points.
by the associated press
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