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Workers’ Lack of Confidence in Retirement Savings Means Working Longer

July 15, 2009 — A new survey of workers’ retirement confidence finds that the median age for retirees has increased, and it confirms that workers who aren’t confident in their retirement savings plan to work longer. 

The 2009 Retirement Confidence Survey from Employee Benefit Research Institute (EBRI) found that, although the median (mid-point) retirement age for retirees in the survey had increased from age 59 in 1991 to age 62 in 2003, a gap remains between worker expectations and the experience of current retirees.

Workers not expecting benefits from a defined benefit pension plan (compared with those who expect these benefits), nonsavers (compared with those who have saved for retirement), and workers age 35 or older (compared with younger workers) are among those expected to retire later.  

Comparison of Planned and Actual Retirement Age

Source:  Employee Benefit Research Institute and Mathew Greenwald & Associates Inc.,  2009 Retirement  Confidence Survey

The RCS has consistently found that a large proportion of retirees leave the work force earlier than planned (47 percent in 2009).  Many retirees who retired early cite negative reasons for leaving the workforce before they expected, including health problems or disability (42 percent); changes at their company, such as downsizing or closure (34 percent); and having to care for a spouse or another family member (18 percent). Others say work-related reasons (22 percent) or outdated skills (13 percent) played a role. Some retirees mention a mix of positive and negative reasons for retiring early, but just 10 percent offer only positive reasons. 

www.ebri.org

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