Do Workers Think They Are On Track For Retirement?

EBRI 2011 Retirement Confidence Survey:

Do Workers Think They Are On Track For Retirement?

When it comes to evaluating their progress in planning for retirement, do most workers feel like they are behind schedule, ahead of schedule, or right on track?

According to 2011 Retirement Confidence Survey (RCS), more workers than ever state that they are a lot (40 percent) or a little (30 percent) behind schedule—fully 70 percent say they are not where they need to be.

The percentage of workers who say they are ahead of schedule has changed little (7 percent in 2005, 8 per-cent in 2011). However, the portion of those saying they are on track has declined from 37 percent in 2005 to 21 percent in 2011.  Not surprisingly, the RCS found that the likelihood of feeling a lot behind schedule is inversely related to household income, household assets, health status, and education: The less income, assets, education, and health status, the more behind workers tend to feel.

Other data from the RCS:

• Attitudes by type of worker : Among those more likely to describe themselves as a lot behind schedule are single workers (compared with married workers), those who have not saved for retirement (compared with savers), those who have not done a retirement needs calculation (compared with those who have), those who are not participating in a retirement savings plan at work (compared with participants), and those who do not currently have benefits from a defined benefit retirement plan (compared with those who are entitled to benefits).

• Retiree health coverage: In addition, those who do not expect employer-provided health insurance in retirement are more likely than those who do to say they are a lot behind schedule.

Full details of the 2011 RCS are in the March 2011 EBRI Issue Brief and online at http://www.ebri.org/surveys/rcs/2011/