Industry News

Recently, the Employee Benefit Research Institute (EBRI) published its report, 2024 Retirement Confidence Survey Summary Report. The 34rd annual survey found that the overall confidence of workers and retirees in retirement security has remained consistent with last year.

According to the survey, 74% of retirees are confident in their ability to live comfortably throughout retirement. In addition, about 68% of workers are confident they will be able to retire comfortably. Approximately, 28% of workers and 32% of retirees feel confident in their retirement due to their income, finances and stable assets. Overall, retirees expressed higher levels of confidence to cover basic and medical expenses than current workers.

Both workers and retirees report high concerns about inflation and its effect on their savings and spending. About 31% of workers and 40% of retirees cite inflation and cost of living as the primary reasons for lacking retirement confidence. Nearly 80% of workers and 70% of retirees are concerned that inflation will remain high for at least the next 12 months.

Similar to last year’s findings, 70% of retirees reported retiring earlier than expected with a median retirement age of 62. Of those who retired early, 40% indicated that they retired since they were able to afford it and 70% reported that the reason was “out of their control.” About 75% of workers expect to continue working for pay in retirement, but only 30% of current retirees reported actually working for pay in retirement.

In addition, the level of confidence among workers and retirees for Social Security continuing to offer benefits of at least equal value to those received today remains comparable with last year. About 88% of workers expect Social Security to be a source of income in retirement. However, only 66% of workers feel they understand Social Security and the various employment and claiming decisions that impact their retirement benefits.

The summary report is available here.