Nearly 20 percent of Americans felt “very confident” that they are on the way to having enough money for retirement, according to a report from the Employee Benefit Research Institute. This was higher than the 13 percent recorded last year, which was the lowest level on record.
A total of 37 percent noted that they were “somewhat confident” in achieving their retirement goals, the report showed. Less than one-quarter of those polled explained they did not feel good about their retirement prospects.
“Retirement confidence is strongly related to retirement plan participation,” said Jack VanDerhei, research director at EBRI, and co-author of the report. “In fact, workers reporting they or their spouse have money in a defined contribution plan or IRA or have a defined benefit plan from a current or previous employer are more than twice as likely as those without any of these plans to be very confident (24 percent with a plan vs. 9 percent without a plan).”
The number of those who felt that they would be financially secure once retired improved, as well, the report noted. This figure rose to 28 percent this year from the previous level of 18 percent, while just 17 percent noted not feeling good about their chances.
Older Americans gain retirement confidence
Retirement confidence is increasing for a number of age groups, especially those who are nearing retirement. According to a report from Del Webb, close to six in 10 of those considered baby boomers felt that they would be able to retire by age 65. This is notably better than the 2010 retirement age median of 67 years old.
“For the first time in what may seem like a lifetime, boomers are transitioning to a new stage in their lives that is filled with zest and personal discovery,” said Fred Ehle, vice president of brand marketing for Del Webb. “They are able to re-evaluate their lives and focus on what is most important to them – which tend to be friends, family and a healthy lifestyle. Once they do so, they optimize every available opportunity to live their ‘new’ lives to its fullest extent.”
With retirement, many Americans are looking to take part in a multitude of activities. The report added that one-third prioritized travel, while more than 60 percent felt they would focus on items to improve their physical and mental health.