During the worst of the global financial crisis of 2008, many Americans saw their retirement nest eggs shrink dramatically. This dealt a huge blow to many who were nearing retirement and cast a chill over the average American’s confidence in their ability to retire at any age. The good news is that the stock market has since rebounded to new highs. For those who stayed the course and continued to save for retirement, the market recovery has restored much of what was lost in retirement accounts such as 401ks and IRAs. But the confidence of the average American about their ability to retire remains low and still lags pre-crisis levels.
A recent survey conducted by Employee Benefit Research Institute (EBRI) indicates that the percentage of workers who indicated that they are “Very Confident” that they will have enough money to live comfortably in retirement rose to 22% in 2015. This is up from a low of 13% in 2009, but still well below the all-time high of 27% set in 2007. Further, the percentage of workers who responded that they are “Not at all Confident” actually rose from 22% in 2009 to 24% in 2015. Not surprisingly, 28% of workers who currently have savings in a retirement plan are “Very Confident” about retirement, compared to 12% among those who have no retirement savings.
You can see more details of the ERBI 2015 Retirement Confidence Survey here. If you are not confident that you are ready for a worry-free retirement or would like a second opinion, we would be happy to help you.