WASHINGTON--(BUSINESS WIRE)--Reflecting the growing concern over health care costs and economic issues, American workers' confidence in being able to afford a comfortable retirement decreased over the past year by a rate unmatched in the 18 years of the Retirement Confidence Survey® (RCS), according to just-released survey results.The percentage of workers who are very confident about having enough money for a comfortable retirement decreased sharply, from 27 percent in 2007 to 18 percent in 2008, the biggest one-year drop in the 18-year history of the RCS. Retiree confidence in having a financially secure retirement also decreased, from 41 percent to 29 percent, a drop of 12 percentage points.
Decreases in confidence occurred across all age groups and income levels but was particularly acute among younger workers and those with lower income. The RCS was conducted by the nonpartisan Employee Benefit Research Institute (EBRI), and full results are online at www.ebri.org/surveys/rcs/2008
According to Dan Houston, president, Retirement & Investor Services at the Principal Financial Group®, while the survey shows retirement confidence is at a record low, it’s critical for Americans to show financial resolve and prudence. “Despite economic fears, market volatility is cyclical and relatively short-term. Americans should take a deep breath, be wise consumers, stay out of debt and most important, stick to their long-term financial plans,” Houston said. The Principal Financial Group, one of the nation’s 401(k) leaders, is a long-time underwriter of the annual EBRI RCS.
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