Data & Research April 23, 2009

Many Employees Guess How Much They Need to Retire

Almost one-fifth of workers ask a financial adviser how much they need to accumulate to retire, according to the Employee Benefit Research Institute’s (EBRI) latest Retirement Confidence Survey.
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Instead of doing a systematic retirement needs calculation, 44% of workers continue to guess at how much they will need to accumulate, the study found. Approximately 26% report doing their own estimate, and 18% ask a financial adviser. Others read or hear how much is needed (9%), use an online calculator (7%), or fill out a worksheet or form (5%).

Employer Plans Large Source of Income

The survey also found that employer plans are a major source of retirement income. Four in 10 workers polled in the Employee Benefit Research Institute’s (EBRI) latest Retirement Confidence Survey said they anticipate their employer-sponsored retirement savings plan will be a major contributor to their retirement income stream.

EBRI said in addition to the 42% pointing to their workplace plan, 32% mention Social Security, and 28% expect their defined benefit pension plan will be a major contributor to their post-work cash flow.

Workers that have saved for retirement are more likely than non-savers to expect major retirement income from workplace savings, pensions, and IRAs. Conversely, non-savers are more likely to say Social Security and employment will be major sources of retirement income.

More information is available here.

 

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