The 2015 Retirement Confidence Survey: Having a Retirement Savings Plan a Key Factor in Americans’ Retirement Confidence

40 Pages Posted: 28 Apr 2015

See all articles by Ruth Helman

Ruth Helman

Greenwald & Associates

Craig Copeland

Employee Benefit Research Institute (EBRI)

Jack VanDerhei

Morningstar Center for Retirement and Policy Studies

Date Written: April 2015

Abstract

This paper presents key findings from the 25th annual Retirement Confidence Survey (RCS), a survey that gauges the views and attitudes of working-age and retired Americans regarding retirement, their preparations for retirement, their confidence with regard to various aspects of retirement, and related issues. The 2015 RCS by EBRI/Greenwald & Associates finds that the nation’s retirement confidence continues to rebound from the record lows experienced between 2009 and 2013 -- but this is based on the increasing optimism of those who indicate they and/or their spouse have a retirement plan. The percentage of workers confident about having enough money for a comfortable retirement, at record lows between 2009 and 2013, increased in 2014 and again in 2015. Twenty-two percent are now very confident (up from 13 percent in 2013 and 18 percent in 2014), while 36 percent are somewhat confident. Twenty-four percent are not at all confident (statistically unchanged from 28 percent in 2013 and 24 percent in 2014). The increased confidence since 2013 is strongly related to retirement plan participation. Among those with a plan, the percentage very confident increased from 14 percent in 2013 to 28 percent in 2015. In contrast, the percentage very confident remained statistically unchanged among those without a plan (10 percent in 2013, 9 percent in 2014, and 12 percent in 2015). Retiree confidence in having a financially secure retirement, which historically tends to exceed worker confidence levels, also increased, with 37 percent very confident (up from 18 percent in 2013 and 27 percent in 2014). The percentage not at all confident was 14 percent (statistically unchanged from 14 percent in 2013 and 17 percent in 2014). Worker confidence in the affordability of various aspects of retirement has also rebounded. In particular, the percentage of workers who are very confident in their ability to pay for basic expenses has increased (37 percent, up from 25 percent in 2013 and 29 percent in 2014). The percentages of workers who are very confident in their ability to pay for medical expenses (18 percent, up from 12 percent in 2011) and long-term care expenses (14 percent, up from 9 percent in 2011) are slowly inching upward. Cost of living and day-to-day expenses head the list of reasons why workers do not save (or save more) for retirement, with 50 percent of workers citing these factors. Nevertheless, many workers say they could save a small amount more. Seven in 10 (69 percent) state they could save $25 a week more than they are currently saving for retirement.

Keywords: Automatic contribution escalation, Automatic enrollment, Debt, Employment-based benefits, Medicare attitudes and opinions, Retirement age, Retirement attitudes and opinions, Retirement income, Retirement plan participation, Retirement planning, Savings, Social Security attitudes and opinions

JEL Classification: D31, D91, J26, J33

Suggested Citation

Helman, Ruth and Copeland, Craig and VanDerhei, Jack, The 2015 Retirement Confidence Survey: Having a Retirement Savings Plan a Key Factor in Americans’ Retirement Confidence (April 2015). EBRI Issue Brief, Number 413 (April 2015), Available at SSRN: https://ssrn.com/abstract=2599758

Ruth Helman (Contact Author)

Greenwald & Associates ( email )

4201 Connecticut Ave., NW
Suite 620
Washington, DC USA 20008
United States
202-686-0300 ext.138 (Phone)
202-696-2512 (Fax)

Craig Copeland

Employee Benefit Research Institute (EBRI) ( email )

1100 13th Street, NW
Suite 878
Washington, DC 20005-4204
United States
202-775-6356 (Phone)
202-775-6312 (Fax)

Jack VanDerhei

Morningstar Center for Retirement and Policy Studies ( email )

22 W Washington Street
Chicago, IL 60602
United States

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