Retirement Confidence Is Up, But There’s A Catch

Retirement Confidence Is Up, But There’s A Catch

Buoyed by a sharp rise in stock prices that left many retirement savers feeling flush, the number of U.S. workers who say they’re confident about their ability to retire comfortably edged up last year. That’s according to Next Avenue contributing writer Diane Harris, who reported on the results from the Employee Benefit Research Institute’s (EBRI) 28th annual Retirement Confidence Survey, the country’s longest running look at the retirement prospects for workers and retirees.

Sixty-four percent of workers surveyed said they’re very or somewhat confident about their financial prospects in retirement, up from 60 percent in 2016. Confidence was even higher among those closest to quitting time: 71 percent of workers aged 55 and older professed confidence they’ll have enough money to live comfortably in retirement.

The big catch to this seemingly good news story: For many Americans, the faith in their ability to live well after they stop working full-time seems to be misplaced.

“Only about half of the workers 55 and up had roughed out how much they’ll need to have saved, what their costs will likely be or how much monthly income they’ll need to cover those bills,” wrote Harris. “Worse, just 37 percent had thought about how much savings to tap for living costs in retirement and a mere 28 percent had forecasted their estimated health care expenses.”