WASHINGTON, March 19 (UPI) — Saving enough for retirement is a concept that is slipping away for many U.S. workers, a national survey found.
The Employee Benefit Research Institute, in a report released on its website Tuesday, found 57 percent of respondents to a survey indicated they had $25,000 or less in total savings and investments, a figure that excludes the equity they might have in their homes.
The Wall Street Journal reported those indicating they had such a small amount saved has grown. In 2008, 49 percent indicated they had $25,000 or less squirreled away.
More than a quarter of the respondents in the current survey — 28 percent — indicated they had no confidence in their ability to fund a comfortable retirement. In the 23-year history of the survey, that is the highest that has been, the Journal said.
The survey, which was conducted in January, included responses from 1,003 workers and 251 retirees.
“Workers are recognizing there is a crisis,” said Alicia Munnell, director of the Boston College Center for Retirement Research.
In a separate survey sponsored by financial management firm Country Financial, only one third of respondents indicated they believed a middle-income family could save for a secure retirement.
The telephone survey that included 3,000 respondents was compiled by Rasmussen Reports.
Among its findings, 59 percent of respondents aged 50 to 64 indicated they started saving for retirement before age 40, while just 38 percent currently 65-years old or older started saving by age 40.
Overall, 34 percent indicated they agreed with the idea of having the government play a larger role in retirement funding. But Baby Boomers age 50 to 65 were far less likely to agree than those age 18 to 29, known as Generation Y.
Among Baby Boomers, 31 percent indicated the government should play a bigger role, while 49 percent of Gen Y respondents indicated government should play a larger role.
On one hand, having enough to retire is a matter of having a strong economy. But on the other, the Society of Actuaries in September says life expectancy increased by a year for men and 1.5 years for women from 2000 to 2012.
Men who turn 65 in 2013 are expected to live to age 85.5. Women turning 65 this year are expected to live to 87.7, the society said.
More years in retirement means workers have to save that much more to retire comfortably and employers are helping much less than in the past.
Using Department of Labor figures, the percentage of U.S. workers in the private sector covered by defined benefit plans has dropped from 28 percent in 1979 to 3 percent in 2011, the Employee Benefit Research Institute said.
Copyright 2013 United Press International, Inc. (UPI).
Back to the welfare concept so prevelant in the US today. People don’t want to take care of themselves, so they want the govt. to do it for them. Buy a cheaper cell phone, get a less expensive mediacom package. Make a budget, live by it, watch your spending. People have done it in the past. What happened to the country where people had the pride and self reliance to take care of themselves, and not expect govt. charity to nursemaid them?
@A citizen-we have had this conversation before. T^here is a huge difference between welfare (brick for brains is on that) and Social Security. Social Security is a fund that we pay into over our working lives (at least the ones that work do) with the promise that it will be there when we retire. Yes, It is generally not enough for full retirement but there are millions of people who live on nothing else. Medicare is a medical insurance that was set up for people on Social Security. It is not free although it is very affordable at around $100 p/month p/person. Medicare only covers about 80% and does not cover some things at all. However, you can purchase a supplemental plan that generally covers anything Medicare doesn’t cover. Do not confuse Social Security with welfare. Not the same thing at all.
@LVS – Please show me where I mentioned social security or medicare in my post. Sometimes you read more into what is written than is actually there.
@A Citizen-I didn’t say you did. I just said we have had this conversation before and we have. Didn’t mean to point fingers there. It is just people like bricks for brains who I firmly believe is a real welfare case , that piss me off. Fried brains likes to brag about how soon she retired but I believe she just went on welfare due to diminished capacity. (FRIED BRAINS).
Social security is welfare for the old.
@Anonymous – How do you equate soc. sec. as welfare? People pay into it when they are working, and then reap the benefits when they retire. As in any business transaction, when you pay for something, you get something in return.
Welfare reform was passed way back in 1996 you idiot.
What do you do when you are 60 years old and get downsized out of a job? Company’s won’t hire you because of your age (no matter what they say that is true) and if you do get a job it is for a lot less money and probably with no benefits. Try buying health insurance when you are in your early 60’s with diabetes. You have no choice but to use your savings to live on until it is gone. Then combine it with the bad economy when everything goes up except your income.
I think that half black guy in the white house wants to help you LVS, he really does.
I don’t need his help but, there are a lot of people who do. Not everyone can be on welfare like you.