Retirement: the big disconnect
By Leslie Haggin Geary • Bankrate.com

Ah, retirement! No matter how we envision our own golden years, it seems we're a nation of optimists.

Seventy percent of workers feel very or somewhat confident that they'll have enough money to afford a comfortable life in retirement, according to the latest annual retirement survey by Employee Benefit Research Institute, or EBRI.

Unfortunately, rosy expectations don't square with reality. Sure, we can envision languid days dictated by nothing more complex than whim and desire. But the truth is, rigid weeks punctuated by commuter schedules, project deadlines and the buzz of alarm clocks may hit closer to reality.

By the numbers: The nation's workers say ...

• 70 percent feel very or somewhat confident that they'll have enough money to afford a comfortable life in retirement. • 66 percent report that either they or their spouse have saved something for retirement. • 68 percent are "not at all" or "not too" confident that Social Security will continue to pay. • 13 percent have no idea how much money they'll need for retirement. • 49 percent of those who have not saved are nevertheless confident about a comfortable retirement. • 49 percent of workers of all ages have less than $25,000 in retirement savings.

More than half of all individuals have no idea how much money they'll need for retirement. Many intend to rely on government and employer programs that may not adequately cover future expenses. Even optimists are unprepared. A full 49 percent of those workers who are confident about retirement haven't saved anything for life after work.

"There's a very large disconnect," says Craig Copeland, a co-author of EBRI's annual retirement survey. "They still think there will be money there for them."

Why are we so optimistic? Part of the problem stems with those who've already retired.

"Workers see them and think they're fine," says Copeland. "But if you look at the group of retirees who are 65 and older, nearly two-thirds of them rely almost exclusively on Social Security for their income. Social Security benefits provide 80 percent of income for 60 percent of today's retirees, with average monthly Social Security payout running just over $1,000.