Confidence About Retirement Still Recovering, EBRI Research Finds

Although the confidence of retirement plan participants and retirees has not completely recovered from a significant decline observed in 2023, most participants appear to be positive about their prospects for retirement, according to information presented during a webinar Wednesday, based on the “2024 Retirement Confidence Survey” by the Employee Benefit Research Institute and Greenwald Research. 

“Retirement confidence went down for workers in 2023, one of the largest percentage points declined since 2008, 2009,” said Craig Copeland, director of wealth benefits research at EBRI. “We have not reached back to what we were in.”

EBRI’s survey, conducted from January 2 to 31 among 2,500 Americans roughly split between workers and retirees, found the same type of result for retirees, where confidence has not reached back to the high that it hit in 2021. 

However, Copeland noted workers and retirees still held relatively high levels of confidence, 68% of workers and 74% of retirees are either very or somewhat confident that they will have enough money to live comfortably throughout retirement. 

“They’re still pretty optimistic about the retirement prospects, even though they weren’t as optimistic as they were a few years ago, as they do have concerns,” he says. 

Peter Kapinos, head of workplace and investment marketing at Empower, discussed findings from the firm’s annual study called “Empowering America’s Financial Journey,” a snapshot of approximately 4 million people’s savings and investing behavior.

Kapinos discussed generational perspectives on retirement from the study. 

Retirement confidence for younger generations is a little higher than for average Americans, probably due to a longer timeframe that individuals who are Generation Z or Millennials have to save for retirement, he said. Discussing the gender confidence gap, he noted that while men historically report higher retirement confidence than women, this disparity is not due to coverage or savings rates, as women often save at higher rates.

“When you look at retirement confidence, people aren’t just saving within a vacuum, they’re looking at broader expectations around their savings,” Kapinos said.

Lisa Greenwald, CEO of Greenwald Research, spoke of workers’ confidence in their financial readiness for retirement, revealing that 76% felt confident they could cover basic expenses, and two-thirds stated they had enough for medical expenses. 

Additionally, 62% said their money will last throughout their lifetime, and the same percentage reported feeling they can keep up with the cost of living and inflation. She highlighted that while a significant number of workers are somewhat confident in their preparations, only 30% feel very confident.

Moreover, two-thirds of workers expressed at least some confidence in their overall financial preparation for retirement. However, only 29% reported feeling very confident in their efforts, a slight increase from the previous year. This data suggests a moderate level of financial assurance among workers but highlights a gap in the number who feel fully prepared for their retirement years, Greenwald said.