In general, workers seem to begin preparing for retirement almost as soon as they get their first job. However, according to the 2021 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), retirement preparations do vary a bit by age group.
Retirement Preparations
Nearly three-quarters (72%) of workers say that they or their spouse have personally saved money for retirement. Not surprisingly, the older the respondents were, the more likely they were to report saving:
- Age 25 to 34: 63%
- Age 35 to 44: 71%
- Age 45 to 54: 75%
- Age 55 and older: 81%
In terms of amount saved, even many of those in the younger age brackets seem to be off to a good start.
| Epidemic | Month end* | 6-month performance, S&P 500 | 12-month performance, S&P 500 |
|---|---|---|---|
| SARS | Apr-2003 | 14.59% | 20.76% |
| Avian (Bird) flu | Jun-2006 | 11.66% | 18.36% |
| Swine flu (H1N1) | April 2009** | 18.72% | 35.96% |
| MERS | May-2013 | 10.74% | 17.96% |
| Ebola | Mar-2014 | 5.34% | 10.44% |
| Measles/Rubeola | Dec-2014 | 0.20% | -0.73% |
| Zika | Jan-2016 | 12.03% | 17.45% |
Although workers appear to be setting money aside for retirement, have they actually performed a calculation to determine how much they may need? Here’s the percentage for each age group that said yes to that question:
- Age 25 to 34: 45%
- Age 35 to 44: 47%
- Age 45 to 54: 48%
- Age 55 and older: 60%
EBRI also questioned workers about other ways they could prepare for retirement. Following is a breakdown of how each age group responded.
| Age 25-34 | Age 35-44 | Age 45-54 | Age 55 and Older |
|
|---|---|---|---|---|
| Considered how much to withdraw from savings during retirement | 34% | 35% | 43% | 48% |
| Considered how one would occupy time in retirement | 45% | 45% | 55% | 60% |
| Calculated how much would likely be needed for health expenses | 35% | 32% | 39% | 48% |
| Estimated your monthly income in retirement | 42% | 46% | 49% | 61% |
| Planned for how to cover an emergency or big expense during retirement | 41% | 38% | 43% | 52% |
Confidence in different aspects of retirement
Approximately seven out of 10 workers say they are very or somewhat confident in having enough money to retire comfortably. The results don’t vary too much when workers were asked about their level of confidence in specific aspects of retirement (responses represent the total responding “somewhat” or “very confident”).
| Age 25-34 | Age 35-44 | Age 45-54 | Age 55 and Older |
|
|---|---|---|---|---|
| Have enough money to last your entire life | 65% | 64% | 62% | 62% |
| Have enough money to take care of medical costs | 73% | 64% | 68% | 66% |
| Have enough money to pay for basic expenses | 78% | 76% | 76% | 79% |
| Doing a good job of preparing financially for retirement | 76% | 70% | 70% | 71% |
For more information on this year’s Retirement Confidence Survey, please visit www.ebri.org.
If you have questions or need assistance, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.