The recession has driven confidence among U.S. workers in the prospect of a comfortable retirement to record lows, research showed Tuesday.Only 13% of workers feel very confident they will have enough money for a comfortable retirement, the lowest level since the Employee Benefit Research Institute, a public policy research organization, began its annual study in 1993.
Respondents blamed economic uncertainty, a drop in the value of their retirement savings and increases in health care and day-to-day expenses for their lowered expectations, it said.
Only one-quarter of workers expect to have enough money to cover basic expenses in retirement, it said. Just 13% are very confident they can pay for medical expenses.
Yet while workers are worrying, many remain poor planners, the study showed.
Fewer than half, 44%, have tried to calculate how much they will need to have saved by the time they retire. The same percentage simply guess at what they will need to be comfortable in retirement, it said.
Those who knew the most about their own financial realities were most likely to lose confidence in their futures.
Among workers who have calculated their retirement needs, the proportion calling themselves very confident dropped to 19% in 2009 from 29% the previous year.
Confidence remained level among those who have done no calculation, at 8% in 2009 and 9% in 2008.
Among those feeling less confident, 81% said they have cut expenses, 43% have changed the way they invest their money, and 38% are working more hours or a second job, it said.