More U.S. workers are confident about their retirementprospects relative to last year, according to the Employee Benefit Research Institute's2016 Retirement Confidence Survey.

|

The 26th installment of the non-partisan,not-for-profit think tank's retirement confidence survey is theindustry's longest-running account of retirement preparedness.

|

The number of workers “very confident” about their savings rateleveled off this year at 21 percent, down from 22 percent in2015.

|

But the number of workers “somewhat confident” increased to 42percent from 36 percent in 2015, and those “not at all confident”decreased to 19 percent in 2016, down from 24 percent lastyear.

|

While any improvements are no doubt welcome, this year'sconfidence survey shows glaring shortfalls in the country's overallstate of retirement readiness, particularly among workers withoutaccess to a workplace retirement savings plan.

|

Read: Zero retirement savings haunt a third ofAmericans

|

For workers reporting that they or their spouse have invested inan IRA or workplace defined contribution or pension plan, 74percent are at least somewhat confident they will have enoughsavings to retire comfortably.

|

For those without access to a retirement plan, that number isonly 39 percent.

|

More than half—or 57 percent—of workers without access to aretirement plan say they have little or no confidence in theirability to retire comfortably.

|

“Among those who are confident about retirement, it'soverwhelmingly among those who have a retirement plan,” said JackVanDerhei, research director at EBRI and co-author of this year'sstudy.

|

Luke Vandermillen, vice president of retirement an incomesolutions at Principal, one of the 17 underwriters of this year'sstudy, said the improvements in perceived readiness this year add apositive in light of recent market volatility.

|

“It's important to stay focused on the things you can controland keep the long-term in mind,” said Vandermillen in an emailstatement to BenefitsPro.

|

“Access to a retirement plan at work continues to have abig impact on likelihood to save,” added Vandermillen.“Eighty-eight percent of workers who are offered a retirement planhave saved compared to only 21 percent who don't have access toplan at work.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.