Retirement confidence is at a low ebb, but saving enough to stop working isn’t impossible.
It costs an average of 20 percent less to live in retirement, according to an analysis of a government survey of people ages 65 and older.
Only 14 percent of Americans are very confident that they will have enough money to retire and live comfortably, according to the 22nd annual Employee Benefit Research Institute’s Retirement Confidence Survey released today.
This number hasn’t changed since 2009 when a host of people not too far from retirement lost their jobs. According to the survey, 42 percent see uncertainty over whether they will have a job as their most pressing economic issue.
The survey also emphasizes that many Americans haven’t saved much for retirement. Some 60 percent of workers say — not counting the value of their homes and any old-fashioned defined-benefit pensions they may expect — their savings total less than $25,000.
With the U.S. Congress down to the nitty-gritty of deficit reduction, the nonpartisan Employee Benefit Research Institute took another look at suggestions to cap tax-advantaged contributions to 401(k)s and other retirement plans to the lower of $20,000 or 20 percent of income. We’ve talked about that, and it’s clear that most people here think it’s