Most public-sector employees do not know how much they need to save for a comfortable retirement, nor have they planned and saved specifically for medical expenses in retirement, according to the TIAA Institute’s 2016 Retirement Confidence Survey of the State and Local Government Workforce.
Still, about 20% are very confident that they are saving and investing appropriately for retirement, with approximately 55% somewhat confident in their savings and investing.
The vast majority are covered by a primary defined benefit pension plan; almost 20% of these workers reported changes to these benefits over the past two years. Two-thirds expect to receive retiree health care benefits from an employer when they retire; among these, one-quarter reported changes to their benefits over the past two years.
The typical state and local government employee would like to retire at age 62, but expects to retire at 65.
Forty-four percent are very confident that they will receive all of the retirement plan benefits they have earned and 44% are somewhat confident. The analogous figures for retiree health care benefits are 30% and 54%, respectively. Their confidence in future Social Security and Medicare benefits is lower.
The TIAA Institute report is here.