Confidence Gap Widens Between Workers and Retirees

Confidence Gap Widens Between Workers and Retirees 

While Americans’ confidence about the ability to support their goals in retirement has not returned to prior levels, nearly three-quarters of retirees say they are confident they will have enough money to live comfortably throughout retirement. According to the 2024 Retirement Confidence Survey (RCS)¹, retirees say their overall lifestyle in retirement is better than expected, despite higher-than-expected costs, with 74% feeling very or somewhat confident about having enough money to live comfortably throughout their retirement years, and 28% feeling very confident. Among those currently living in retirement, over two-thirds say they are enjoying the retirement lifestyle they envisioned while managing their current expenses, and 58% say they are still saving for the future. In addition, 78% are very or somewhat confident about having enough money to cover medical expenses, 72% feel they did a good job preparing financially for retirement, and nearly two-thirds are confident they will have enough money to leave an inheritance.

Preparation is key
Among those still working, retirement confidence is strongly related to retirement plan participation. The RCS study found that those with money in employer retirement plans, individual retirement accounts (IRAs), or who will receive pension benefits, are more than twice as likely as those without any of these plans to be at least somewhat confident about life in retirement. A separate AARP survey supports the connection between retirement savings and confidence levels, finding that among adults age 50 and over, 20% have no retirement savings and 61% are worried they will not have enough money to support themselves in retirement.² If you’re looking for ways to further boost savings, consider taking advantage of matching contributions and automatic deferral increases, if available through your employer’s plan. If you’re over 50 and contributing the maximum amount to your employer plan or an IRA, consider making catch-up contributions. Self-employed individuals have the opportunity to save more through individual 401(k) plans and other deferred compensation arrangements.

If you have questions about strategies to help you remain on track toward your retirement income goals, call the office to schedule a time to talk.

^{1)1”2024 Retirement Confidence Survey.” Ebri.org, 25 APR 2024, https://www.ebri.org/docs/default-source/rcs/2024-rcs/2024-rcs-release-report.pdf?sfvrsn=2447072f_1.
2)“New AARP Survey: 1 in 5 Americans Ages 50+ Have No Retirement Savings.” AARP.pg, 24 APR 2024, https://press.aarp.org/2024-4-24-New-AARP-Survey-1-in-5-Americans-Ages-50-Have-No-Retirement-Savings.}