Is your retirement account flatter than a pancake? You are not alone. A recent survey released shows that many people who are looking at retirement have less confidence that they will be able to afford retirement now than two years ago.
Having a secure retirement is what many people desire.
The Employee Benefit Research Institute says that only 13% of workers who feel very confident that they have enough money for a comfortable retirement has dropped to a new low, dropping five points since last year. In 2007, 40% of the respondents stated that they would have enough for a financially secure retirement. The number of respondents who feel somewhat confident has remained about the same at 41% a decrease of two percent since last year.
More older workers are planing to work in retirement. If possible, live well on less. In retirement, it is generally thought that pensioners have lower expenses for living if their house is paid for and don’t have education fees for children and other costs. The rising costs of healthcare and basic expenses looms large in the minds of everyone especially those who are considering retirement because their funds will be less likely to increase as much as someone who could switch jobs or change careers for a greater income.
The EBRI states that many people do not know how much money they need for retirement. An equal number of people will either sit and plan or guess at how much they need for retirement. More people are paring down their spending and saving, but not necessarily for retirement. Lately there has been an increase in savings, because of the uncertainty in the economy.
Forty-two percent of workers believe that they need $500,000 saved for a comfortable retirement. Having more for retirement is better than having less. Have you calculated how much you think you might need?