AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
2016 RetirementConfidence Survey
Alicia R. Williams, PhD and Eowna Young Harrison, BS
AARP Research https://doi.org/10.26419/res.00159.001
A Secondary Analysis of the Findings fromRespondents Age 50+
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million, that helps people turntheir goals and dreams into real possibilities, strengthens communities and fights for the issues that matter mostto families such as healthcare, employment and income security, retirement planning, affordable utilities andprotection from financial abuse. We advocate for individuals in the marketplace by selecting products and servicesof high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range ofproducts, travel, and services. A trusted source for lifestyle tips, news and educational information, AARPproduces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin; www.aarp.org; AARP TV &Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs ofHispanics. AARP does not endorse candidates for public office or make contributions to political campaigns orcandidates. The AARP Foundation is an affiliated charity that provides security, protection, and empowerment toolder persons in need with support from thousands of volunteers, donors, and sponsors. AARP has staffed officesin all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org.
The views expressed herein are for information, debate, and discussion, and do not necessarily represent officialpolicies of AARP.
Acknowledgments
The authors would like to thank the Employee Benefit Research Institute (EBRI) and Greenwald & Associates forcollecting the data for this study and providing the data to AARP for additional analyses. A special thanks also toKathi Brown for her thoughtful insights and final review of the report. For additional information about thisreport, contact Alicia Williams at [email protected].
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About AARP
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Table of Contents
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Overview and Key Findings ....…………………………………………………………………………. 4
Implications …..………………………………………………………………………………………….… 8
2016 RCS Methodology ………………………………………..………............................................... 9
Detailed Findings
Current Financial Situation …….………..……………………………………………………… 10
Retirement Experiences Compared with Expectations ………..………………………….. 18
Expected and Actual Age of Retirement ……………………………………………………… 25
Levels of Confidence about Retirement and Related Areas…………….......................... 33
Key Predictors of Overall Retirement Confidence ……..…………………………………... 52
Estimations of the Amount Needed for Retirement ……..……......................................... 60
Saving for Retirement …..…………………………..………................................................... 65
Appendix ………………………………………………………………………………………………….. 85
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Overview and Key Findings
This study presents the findings of a secondary analysis of the Employee Benefit Research Institute’s(EBRI) 2016 Retirement Confidence Survey (RCS), with a special focus on respondents age 50+. Thegoal of this study is to provide a better understanding of the retirement expectations, preparations,experiences and needs of Americans 50 years of age and older.
The key findings from this study are as follows:
Retirement Preparations and Estimations
• The average expected age of retirement among 50+ workers is 67; 9 percent of 50+ workers, however,expect to never retire.
• Approximately four in 10 (39%) 50+ workers and one in three (33%) 50+ retirees sought investmentadvice from a professional financial advisor over the past year.
• Fewer than half (45%) of 50+ workers have tried to calculate how much they will need to livecomfortably in retirement; among these workers, the median amount calculated ranges between$250,000 and $499,999.
Saving for Retirement
• Three in four 50+ workers (76%) and two in three 50+ retirees (65%) have personally saved forretirement. However, slightly more than a third of workers (36%) and about half of retirees (49%) haveless than $25,000 in savings and investments. Saving for retirement—as well as the amount saved—tends to increase as household income increases.
• More than one in four 50+ workers (27%) with a retirement savings plan have taken a loan from theplan.
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Retirement Confidence
• Seven in 10 (72%) 50+ workers and more than three in four (78%) 50+ retirees feel at least somewhatconfident that they are doing or have done a good job of preparing financially for retirement.
• 50+ workers and retirees are somewhat more confident about their ability to prepare a budget (91%and 90%, respectively) than they are about their ability to choose health insurance on their own (74%,76%) or plan for retirement (75%, 80%).
• Eight in 10 50+ workers (80%) and retirees (85%) feel at least somewhat confident they will haveenough money to take care of their basic expenses during retirement; but they are less confident thatthey will have enough money to live comfortably (65% and 74%, respectively) and/or pay for theirmedical expenses (62%, 78%) during retirement.
• Just over half (52%) of 50+ workers and more than a third (36%) of 50+ retirees are not confident theywill have enough money to pay for long-term care, if they need it during retirement.
• Nearly half of 50+ workers (48%) and about two in five 50+ retirees (38%) are not confident thatSocial Security will continue to provide benefits of at least equal value to what retirees receive today.Similar percentages (47% and 43%, respectively) also are not confident that Medicare will continue toprovide the level of benefits that retirees currently receive.
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Overview and Key Findings (Continued)
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Overview and Key Findings (Continued)
• Based on composite scoring of the seven areas of retirement confidence1, more than three in four 50+workers (78%) and more than eight in ten 50+ retirees (83%) feel at least somewhat confident abouttheir overall future in retirement.
• Age, self-reported ratings of overall health, total amount of savings and investments, householdincome, and having other retirement savings invested outside of an IRA or employer-sponsoredretirement savings plan are key predictors of overall retirement confidence. Specifically, as the levels ofthese predictors increase, overall retirement confidence also tends to increase.
Sources of Income in Retirement
• Social Security is the most-often cited major source of retirement income for both 50+ workers (48%)and 50+ retirees (64%). This is followed by employer-sponsored savings plans (41%) among workersand employer-provided pension or cash balance plans (30%) among retirees.
• Among 50+ workers and retirees, women (62%) are more likely than men (51%) to cite Social Securityas a major source of expected or actual retirement income; while men (45%) are more likely thanwomen (35%) to cite employment as a minor expected or actual source of retirement income.
__________________________________________
1Note: Overall Retirement Confidence was computed based on respondents’ level of agreement with the following statements:they did/are doing a good job of preparing financially for retirement; they have enough money to live comfortably throughoutretirement; they will have enough money to take care of basic expenses during retirement; they will have enough money to takecare of their medical expenses during retirement; they will have enough money to pay for long-term care, if needed, duringretirement; the Social Security system will continue to provide benefits of at least equal value to what retirees receive today;and the Medicare system will continue to provide benefits of at least equal value to what retirees receive today.
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Overview and Key Findings (Continued)
Retirement Experiences
• Nearly three in five (59%) 50+ retirees say their experiences in retirement, with respect to theirfinances, have not matched their expectations. About one in five (21%) found their expenses to belower than expected; while about two in five (38%) have found their expenses to be higher thanexpected.
• 50+ retirees who retired earlier than planned (46%) were more likely than those who retired whenplanned or later than planned (33%) to say their finances in retirement are higher than expected.
• Among 50+retirees who retired earlier than planned, more than half (55%) cited having a healthproblem or disability as a reason for early retirement.
• More than a quarter of 50+ retirees (26%) have worked for pay after retiring. Among the variousreasons cited for doing so, wanting to stay active and involved (82%) and enjoying working (80%)topped the list.
Debt
• Nearly half of workers and a third of retirees age 50 and older report having a problem with debt; butjust 1 in nine 50+ workers and retirees describe their level of debt as a major problem.
• Among 50+ adults, those who are divorced, partnered or single; those with incomes of less than$25,000; those describing their health as poor or fair; and those with less than a bachelor’s degree aremore likely than their counterparts to describe their level of debt as a problem.
• Although the percentage of 50+ workers and retirees describing their level of debt as a major or minorproblem increased from 2005 to 2011 (by 10 and 12 percentage points, respectively—likely a result ofthe Great Recession in 2008), both percentages returned to 2005 pre-recession levels in 2016.
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Implications
The findings from this study suggests that a majority of workers ages 50 and older may have anunrealistic view of their retirement future. While nearly two in three (65%) 50+ workers are somewhat orvery confident that they will have enough money to live comfortably in retirement, the median amount oftheir current savings and investments is between $50,000 and $99,999. However, the median amountthey expect they will need to accumulate for a comfortable retirement is between $250,000 and $499,999.Additionally, although they estimate they will need to save about 27% of their household income, onaverage, each year in order to have a comfortable retirement, they reported saving an average of just17% of their household income for retirement in the past year. Notably, more than half of 50+ workers saythey have not tried to calculate how much money they will need for a comfortable retirement—animportant first step in retirement planning. The use of retirement calculators may be a low-cost, beneficialmeans of helping workers better estimate the amount they will need to save for a comfortable retirementas well as providing tips on how they can work towards a secure retirement given their particularcircumstances.
The findings from this study also show a positive relationship between self-reported ratings of overallhealth and financial security. Specifically, 50+ adults who rate their overall health as poor, fair or good aresignificantly more likely than those who rate their health as very good or excellent to: describe their levelof debt as a problem, expect to retire before the age of 60, retire earlier than planned, and have a smalleramount of savings and investments. Thus, when planning for retirement, it is important for adults of allages to consider and plan for the possibility of declining health and its potential impact on their retirementfinances.
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2016 RCS Methodology
2016 Retirement Confidence Survey (RCS):
• 26th annual measure of worker and retiree confidence about retirement
• Conducted on January 2 – February 3, 2016 by the Employee Benefit Research Institute (EBRI), inassociation with Mathew Greenwald & Associates, Inc.
• 20-minute phone interviews using random-digit dialing with cell phone supplement
• Data are weighted by age, sex, and education
• Margins of error for the full RCS sample:– ± 3.5 percentage points for all workers– ± 4.4 percentage points for all retirees
• This report focuses on the survey responses of 902 Americans age 50+– 403 workers (not retired)– 499 retirees
• Note: Percentages may not sum to 100 due to rounding and/or missing categories. Also, generally,missing responses are excluded from analysis.
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Current Financial Situation
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Nearly half of workers and a third of retirees report having a problem withdebt; but just one in nine, overall, describe their level of debt as being amajor problem.
Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
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Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
50+ Overall(n=893)
50+ Workers(n=401)
50+ Retirees(n=492)
59%52%
68%
30%34%
25%
11% 13% 8%
A Major Problem
A Minor Problem
Not a Problem
Don't Know
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NOTE: This question was not asked of survey participants in the years 2006-2010. Overall sample sizes for each group by year are provided in the Appendix.
The percentage of 50+ workers and retirees describing their level of debt as aproblem increased by 10-12 points, respectively, from 2005 to 2011—a likelyresult of the Great Recession. However, both percentages have now returnedto roughly 2005 (pre-recession) levels.
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Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
Source: Employee Benefit Research Institute, Retirement Confidence Survey (years: 2005, 2011-2016)
48%
58% 57%50% 50%
43%47%
31%
43%38%
41% 43%
31% 33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2011 2012 2013 2014 2015 2016
Per
cen
tage
des
crib
ing
thei
rle
velo
fd
ebt
asa
maj
or
or
min
or
pro
ble
m
50+ Workers
50+ Retirees
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Among workers and retirees, women and men are equally as likely todescribe their level of debt as a problem.
Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
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50+ Men(n=403)
50+ Women(n=490)
58% 60%
33% 27%
9% 12%
A Major Problem
A Minor Problem
Not a Problem
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among workers and retirees, those who are widowed are the least likely todescribe their level of debt as a problem; while those who are divorced,partnered or single are the most likely to do so.
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Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
Married(n=520)
Widowed(n=143)
Divorced, Partnered,or Single(n=230)
59%71%
52%
31%22%
31%
9% 7%16%
Major problem
Minor problem
Not a problem
Don't Know
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among workers and retirees, those with household incomes of less than$25,000 are significantly more likely than those with higher householdincome levels to describe their level of debt as a major problem.
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Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
Less than$25,000(n=158)
$25,000-$49,999(n=166)
$50,000-$74,999(n=147)
$75,000-$124,999(n=142)
$125,000or more(n=110)
1% 1%
50% 51% 61% 57%70%
24%40% 28% 37%
26%27%9% 11% 7% 3%
Major problem
Minor problem
Not a problem
Don't know
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among workers and retirees, those who rate their overall health as verygood or excellent are much less likely to describe their level of debt as aproblem than those who rate their overall health as poor, fair or good.
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Poor/Fair(n=205)
Good(n=234)
Very Good(n=262)
Excellent(n=181)
49% 52%63%
76%
30%38%
29%18%
19%9% 8% 4%
Major Problem
Minor Problem
Not a Problem
Don't Know
Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers andRetirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among workers and retirees, those with a bachelor’s degree or highereducation are less likely than those with less education to describe theirlevel of debt as a problem.
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Thinking about your current financial situation, how would you describe your level of debt? [50+ Workersand Retirees]
High Schoolor Less(n=227)
Some College(n=279)
Bachelor'sDegree(n=194)
Graduate orProfessional
Degree(n=187)
1% 1%
56% 55%66% 69%
31% 33%27% 25%
13% 12% 5% 6%
Major Problem
Minor Problem
Not a Problem
Don't Know
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Retirement ExperiencesCompared with Expectations
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Three in eight (38%) retirees say their expenses in retirement match whatthey expected; while for about three in five retirees, their expenses areeither higher (38%) or lower (21%) than expected.
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Compared with what you expected when you first retired, would you say your expenses in retirement are? [50+Retirees (n=499)]
Muchhigher
Somewhathigher
Aboutthe same
Somewhatlower
Muchlower
Don't know
18% 20% 38% 13%8%
2%
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Don't know4% Later than
planned5%
About whenplanned
46%
Earlier thanplanned
46%
Although nearly half of retirees (46%) retired when planned, an equal shareof retirees retired earlier than planned; while 1 in 20 (5%) retired later thanplanned.
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Did you retire earlier than you planned, later than you planned, or about when you planned? [50+ Retirees(n=492)]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Muchhigher
Somewhathigher
About thesame
Somewhatlower
Muchlower
Don'tknow
26%20%
26%
11%16%
1%
13%20%
47%
15%
2% 2%
Retired Earlierthan Planned(n=206)
Retired AboutWhen Plannedor Later(n=267)
Retirees who retired earlier than planned (46%) are more likely than thosewho retired when planned or later than planned (33%) to say theirretirement expenses are higher than expected.
Compared with what you expected when you first retired, would you say your expenses in retirement are? [50+Retirees]
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Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among retirees who retired earlier than planned, the most-cited reason—stated by more than half of the retirees—was having a health problem ordisability.
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What is your reason for saying that [you retired earlier than planned]? [50+ Retirees who retired earlier than theyplanned, n=206)]
You had a health problem or a disability
You could afford to retire earlier than you planned
There were changes at your company, such asdownsizing or closure
You wanted to do something else
You had another work-related reason
You had to care for a spouse or another familymember
Changes in the skills required for your job
55%
32%
25%
25%
21%
17%
11%
(Multiple responses permitted.)
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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More than a quarter of retirees—more often men than women—haveworked for pay after retiring.
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Overall(n=354)
50+ Men(n=165)
50+ Women(n=189)
73% 67%78%
5%7%
3%18% 20%
17%
2% 4% 1%1% 2% 1%
Yes, both full-and part-time
Yes, full-time
Yes, part-time
Yes, seasonally/sporadically
No
Have you worked for pay since you retired? [50+ Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Among retirees who worked for pay after retiring, the most-cited reasons fordoing so are wanting to stay active and involved and they enjoy working.
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What is your reason for saying that you [worked for pay after you retired]? [50+ Retirees who worked for pay afterretiring, n=147]
Wanting to stay active and involved
Enjoying working
Wanting money to buy extras
Needing money to make ends meet
A joy opportunity
A decrease in the value of your savings or investments
Keeping health insurance or other benefits
Trying a different career
82%
80%
57%
50%
49%
43%
32%
22%
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Expected and Actual Age ofRetirement
2525
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Although three in four retirees retired before age 65; eight in 10 workersdon’t expect to retire until age 65 or older—or expect to never retire.
Realistically, at what age do you expect to retire? [50+ Workers] /How old were you when you retired? [50+Retirees]
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Under 55 55-59 60-64 65-69 70+ Neverretire
0%3%
17%
43%
28%
9%
18% 19%
38%
17%
8%
0%
50+ Workers(N=378)
50+ Retirees(N=467)
Mean Expected/Actual Ageof Retirement
50+ Workers: 6750+ Retirees: 60
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Nearly one in five workers say they have changed their expected retirementage in the past year; among these workers, the large majority expect to retirelater.
In the past 12 months, has the age at which you expect to retire changed? [50+ Workers (n=403)]. If yes: Do younow expect to retire [sooner or later than planned?] [50+ Workers whose expected age of retirement changed(n=68)]
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Yes18%
No81%
Don'tknow
1%
If yes
Later; at an olderage than before
Sooner; at a youngerage than before
83%
17%
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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On average, women expect to retire at a later age than do men.
Realistically, at what age do you expect to retire? [50+ Workers]
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Under 55 55-59 60-64 65-69 70+ Neverretire
1%
5%
20%
42%
23%
9%
0%2%
15%
44%
31%
8%
Male 50+ Workers(N=166)
Female 50+ Workers(N=212)
Mean Expected Age ofRetirement
Male 50+ Workers: 66Female 50+ Workers: 68
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Although, on average, men and women retired at about the same age; menwere more likely than women to have retired between age 55 and 59; whilewomen were more likely than men to have retired after age 65.
How old were you when you retired? [50+ Retirees]
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Under 55 55-59 60-64 65-69 70+
18%
25%
38%
13%
6%
16% 16%
37%
20%
11%
Male 50+ Retirees(N=229)
Female 50+ Retirees(N=238)
Mean Age of Retirement
Male 50+ Retirees: 59Female 50+ Retirees: 60
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Over the years, the average expected age of retirement among workers hasincreased slightly; while the actual age of retirement among retirees hasremained fairly stable.
64 64 64 65 66 66 66 67 66 66 67 67
61 60 6159 60 61 60 59 60 60 60 60
30
40
50
60
70
80
90
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ave
rage
Exp
ecte
d/A
ctu
alA
geo
fR
etir
em
en
t 50+ Workers
50+ Retirees
30
Realistically, at what age do you expect to retire? [50+ Workers] /How old were you when you retired? [50+Retirees]
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
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Under 55 55-59 60-64 65-69 70+ Never Retire
1%3%
20%
38%
27%
11%
0%2%
15%
47%
28%
7%
Poor, Fair orGood Health(n=147)
Very Good orExcellent Health(n=228)
Workers who rate their overall health as poor, fair or good are more likelythan those who rate their health as very good or excellent to expect to retirebefore the age of 65. However, their expected age of retirement, on average,is the same (67).
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Realistically, at what age do you expect to retire? [50+ Workers]
Mean Expected Age of Retirement (Among50+ Workers providing a retirement age)
Poor, Fair or Good Health: 67Very Good/Excellent Health: 67
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Under 55 55-59 60-64 65-69 70+
22%
18%
38%
15%
7%
11%
16%
42%
21%
10%
Poor, Fair orGood Health(n=266)
Very Good orExcellent Health(n=192)
Retirees who rate their overall health as poor, fair or good were twice as likelyto have retired before the age of 55 than those who rate their overall health asvery good or excellent.
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How old were you when you retired? [50+ Retirees]
Mean Age of Retirement (Among 50+Retirees providing a retirement age)
Poor, Fair or Good Health: 59Very Good/Excellent Health: 62
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Levels of Confidence aboutRetirement and Related Areas
3333
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Three in four workers and four in five retirees feel at least somewhatconfident about their ability to do a good job of planning for retirement.
50+ Overall(n=889)
50+ Workers(n=402)
50+ Retirees(n=487)
10% 13% 7%
11% 11% 10%
33%41%
24%
44%34%
56%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
34
Overall, how confident are you about your ability to do a good job of planning for retirement?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
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Nine in 10 workers and retirees feel at least somewhat confident about theirability to do a good job of preparing a budget.
50+ Overall(n=901)
50+ Workers(n=402)
50+ Retirees(n=499)
1%3% 2% 5%6% 6% 5%
25% 27% 22%
66% 64% 68%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
35
Overall, how confident are you about your ability to do a good job of preparing a budget?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
More than eight in 10 workers (82%) and nearly nine in 10 retirees (88%) feelat least somewhat confident about their ability to do a good job decidingwhen to take Social Security benefits.
50+ Overall(n=889)
50+ Workers(n=402)
50+ Retirees(n=487)
3% 1% 4%5% 8% 3%8% 10%
5%
22%29%
15%
62%53%
73%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
36
Overall, how confident are you that can a good job deciding when to take Social Security benefits?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
About three in four workers (74%) and retirees (76%) feel at least somewhatconfident in their ability to do a good job of choosing health insurance ontheir own rather than through an employer.
50+ Overall(n=889)
50+ Workers(n=402)
50+ Retirees(n=487)
3% 1% 6%11% 12%
10%11% 12% 8%
28%34%
20%
48%40%
56%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
37
Overall, how confident are you in your ability to do a good job of choosing health insurance on your own, notthrough an employer?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
By and large, workers (72%) and retirees (78%) feel at least somewhatconfident that they are doing/did a good job of preparing financially for theirretirement.
50+ Overall(n=901)
50+ Workers(n=402)
50+ Retirees(n=499)
1% 1% 2%13% 15% 11%
11% 12%10%
39%43%
35%
36%29%
43%Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
38
Overall, how confident are you that you (and your spouse) are doing (if worker)/did (if retiree) a good job ofpreparing financially for your retirement?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Retirees (74%) are more likely than workers (65%) to feel at least somewhatconfident that they will have enough money to live comfortably inretirement. For both groups, however, confidence levels are positivelyrelated to the amount of their savings and investments.
50+ Overall(n=902)
50+ Workers(n=403)
50+ Retirees(n=499)
1% 1% 1%14% 16% 12%
16% 19%12%
41%45%
36%
28% 20%38% Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
Median Savings and Investments
50+ Workers 50+ RetireesNot at All/Not Too Confident: $1,000 to $9,999 Less than $1,000Somewhat/Very Confident: $100,000 to $149,999 $50,000 to $99,999
39
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
38%
Overall, how confident are you that you (and your spouse) will have enough money to live comfortablythroughout your retirement years?
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Six in 10 workers (68%) and retirees (64%) feel as confident or moreconfident about having enough money for retirement than they did lastyear.
50+ Overall(n=902)
50+ Workers(n=403)
50+ Retirees(n=499)
1% 1% 1%14% 14% 13%
20% 18% 21%
44% 44% 44%
13% 16% 9%
9% 8% 11%
Much more confident
A little more confident
About as confident
A little less confident
Much less confident
Don't Know
40
38%
How does your current level of confidence about having enough money for retirement compare with yourconfidence last year at this time?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Retirees (85%) are more likely than workers (80%) to feel at least somewhatconfident that they will have enough money to take care of their basicexpenses during retirement.
50+ Overall(n=901)
50+ Workers(n=402)
50+ Retirees(n=499)
1% 1% 1%10% 11% 8%7% 7%
6%
37% 37%36%
46% 43% 49% Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
41
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Overall, how confident are you that you (and your spouse) will have enough money to take care of your basicexpenses during your retirement?
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Retirees (78%) are more likely than workers (62%) to feel at least somewhatconfident that they will have enough money to take care of their medicalexpenses during retirement.
50+ Overall(n=900)
50+ Workers(n=402)
50+ Retirees(n=498)
2% 1% 2%14% 17% 10%
15%19%
11%
38%40%
35%
32%22%
43% Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
42
Overall, how confident are you that you (and your spouse) will have enough money to take care of your medicalexpenses during your retirement?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Over half of workers (52%) and more than a third of retirees (36%) are notconfident that they will have enough money to pay for long-term careshould they need it during retirement.
50+ Overall(n=894)
50+ Workers(n=397)
50+ Retirees(n=497)
2% 2% 1%
26% 29%22%
19%23%
14%
33%31%
36%
21% 15%26%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
43
Overall, how confident are you that you (and your spouse) will have enough money to pay for long-term careshould you need it during your retirement?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Nearly half of workers (48%) and nearly two in five retirees (38%) are notconfident that Social Security will continue to provide benefits of at leastequal value to what today’s retirees receive.
50+ Overall(n=902)
50+ Workers(n=403)
50+ Retirees(n=499)
2% 3%21% 23% 18%
22% 25%20%
40% 39%41%
15% 12% 17%Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Don't Know
44
Overall, how confident are you that the Social Security system will continue to provide benefits of at least equalvalue to the benefits received by retirees today?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Nearly half of workers (47%) and about four in nine retirees (43%) are notconfident that Medicare will continue to provide benefits of at least equalvalue to what today’s retirees receive.
50+ Overall(n=901)
50+ Workers(n=403)
50+ Retirees(n=498)
3% 2% 3%
19% 20% 19%
26% 27% 24%
38% 39% 38%
14% 12% 15%Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
Don't Know
45
How confident are you that the Medicare system will continue to provide benefits of at least equal value to thebenefits received by retirees today?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Over the years, retirees’ confidence that they are doing a good jobpreparing financially for retirement has fluctuated more significantly thanthat of workers.
46
How confident are you that you are doing (if worker)/did (if retiree) a good job of preparing financially for yourretirement?
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
74%70% 70%
67%
69%68%
65% 65%68%
74%72%
77%80%
71%
66%
71%
74%72%
70% 70%
75%78%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
de
nt
50+ Workers
50+ Retirees
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Since 2006 (with one exception in 2008), workers have felt less confidentabout having enough money to live comfortably in retirement than retirees.
47
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
66%69%
65%
53% 54%52%
54% 53%57%
67%65%
73%
79%
64%67%
61% 62%65%
63%
68%71%
74%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
de
nt
50+ Workers
50+ Retirees
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
Overall, how confident are you that you will have enough money to live comfortably throughout your retirementyears?
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Over the years, workers and retirees age 50-59 experienced larger declines inconfidence about having enough money to live comfortably throughoutretirement than those ages 60-69 and 70+.
48
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
Overall, how confident are you that you (and your spouse) will have enough money to live comfortably throughoutyour retirement years? [50+ Workers and Retirees]
68%
74%
67%55%
57%53% 53%
49%
58%
67%62%
68%
73%
67%
67% 58%61% 61%
66%
70%
69% 68%
82%83%
78%75%
70%68%
74%72%
76%
72%
80%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
den
t
Age 50-59Age 60-69Age 70+
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Although retirees’ confidence—and particularly that of workers—abouthaving enough money to take care of basic expenses during retirement hasfluctuated significantly since 2006, it has now bounced back to pre-recessionlevels.
49
How confident are you that you will have enough money to take care of basic expenses during your retirement?
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
80%79%
80%
73% 75% 74%72%
71%72%
80% 80%
84% 83%
78%
79%76% 76%
82%
76%
82% 82%
85%
65%
70%
75%
80%
85%
90%
95%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
den
t
50+ Workers
50+ Retirees
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Over the years, workers generally have felt less confident than retireesabout having enough money to take care of their medical expenses duringretirement.
50
How confident are you that you (and your spouse) will have enough money to take care of your medicalexpenses during your retirement?
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
61%
66%
57%54%
48%
53% 53%50%
55%
62% 62%
74%77%
71% 70%66%
68%72%
68%
73%
78% 78%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
den
t
50+ Workers
50+ Retirees
NOTE: Overall sample sizes for each group by year are provided in the Appendix.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Over the years, workers’ and retirees’ confidence about having enoughmoney to pay for long-term care during retirement has fluctuated fairly intandem.
51
How confident are you that you will have enough money to pay for long-term care, such as nursing home orhome health care, should you need it during retirement?
Source: Employee Benefit Research Institute, Retirement Confidence Survey (Data files for 2004 through 2016 surveys).
46%49%
43%39%
34%39%
36% 34%39%
45% 46%
56%60%
48%44% 43%
50%47%
44%50%
60% 62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Per
cen
tage
Som
ewh
ato
rV
ery
Co
nfi
de
nt 50+ Workers
50+ Retirees
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Key Predictors ofOverall Retirement Confidence
5252
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
More than four in five retirees (83%) and more than three in four workers(78%) feel at least somewhat confident, overall, about their retirementfuture*.
53
*Note: Overall retirement confidence is a composite score based on workers’ and retirees’ responses to seven questions: Confidence that:• they will have enough money to live comfortably throughout retirement;• they will have enough money to take care of basic expenses during retirement;• they did/are doing a good job of preparing financially for retirement;• they will have enough money to take care of their medical expenses during retirement;• they will have enough money to pay for long-term care, if needed, during retirement;• the Social Security system will continue to provide benefits of at least equal value to what retirees receive today; and• the Medicare system will continue to provide benefits of at least equal value to what retirees receive today.
For each question above, points were assigned as follows: “not at all confident”=1; “not too confident”=2; “somewhat confident”=3; and “veryconfident”=4. (No points were assigned for “don’t know” and “refused” responses.)
Composite Score ranges : 0-7 (not at all confident); 8-14 (not too confident); 15-21 (somewhat confident) and 22-28 (very confident).
50+ Overall(n=902)
50+ Workers(n=403)
50+ Retirees(n=499)
4% 6% 2%16% 17% 15%
44% 46%41%
36% 32% 42% Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
*NOTE:
Age, self-reported health status, total amount of savings and investments,household income, and having other retirement savings outside of an IRA oremployer-sponsored plan are key predictors of overall retirement confidence*among 50+ workers and retirees.
54
Stepwise multiple regression was used to assess the relationships among various factors and overall retirement confidence. Thespecific factors assessed were gender; age; education level; employment status (i.e., full-time, retired, other); marital status (i.e., married,widowed, other); self-reported rating of overall health; household income; total amount of savings and investments; whether respondent(or spouse) tried to calculate the amount needed for a comfortable retirement; whether respondent (or spouse) has an IRA; whetherrespondent (or spouse) has an employer-sponsored retirement savings plan; whether respondent (or spouse) has a defined benefit orpension plan; and whether respondent (or spouse) has other retirement savings invested outside of an IRA or employer-sponsoredretirement savings plan. The order and percentages noted for each predictor reflects the degree to which each predictoruniquely explains overall retirement confidence. More information about the regression analysis is available in the Appendix.
[50+ Workers and Retirees (n=342)]
OVERALLRETIREMENTCONFIDENCE
Age6.5%
Having Other RetirementSavings Invested Outside of an
IRA or Employer-SponsoredRetirement Savings Plan
1.3%
Total Amount ofSavings & Investments
2.4%
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Self-Reported Rating ofOverall Health
4.7%Household Income
1.7%
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, as age increases, the percentage who are veryconfident about their retirement future tends to increase.
50-59(n=301)
60-69(n=286)
70+(n=315)
7% 2% 1%
17%19%
13%
48%41%
41%
28%38% 46%
Age Group
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
55
Overall Confidence in Retirement Future [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, as self-reported ratings of health become morefavorable, the percentage who are very confident about their retirementfuture tends to increase.
Poor/Fair/Good(n=127)
Very Good(n=129)
Excellent(n=111)
6% 1%
21%14%
5%
48%
40%
37%
25%
45%58%
Self-Reported Overall Health
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
56
Overall Confidence in Retirement Future [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, as household income increases, thepercentage who are very confident about their retirement future tends toincrease.
Less than$25,000(n=159)
$25,000-$49,999(n=167)
$50,000-$74,999(n=148)
$75,000-$124,999(n=142)
$125,000or more(n=110)
13% 3% 2% 2%
32%
16% 15%4% 4%
39%
47% 48%51%
32%
16%34% 36%
43%
64%
Household Income
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
57
Overall Confidence in Retirement Future [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, those who have $150k or more in savings andinvestments are more likely to be very confident about their retirementfuture than those who have less than $150k.
Less than $150,000(n=106)
$150,000 or more(n=123)
7%
23%
5%
45%
42%
25%
53%
Total Amount of Savings and Investments
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
58
Overall Confidence in Retirement Future [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, those who have other retirement savingsoutside of an IRA or employer-sponsored retirement savings plan are morelikely to be very confident about their retirement future than theircounterparts.
Does Not Have Other Savings(n=441)
Does Have Other Savings(n=408)
7%
25%
5%
45%
39%
24%
55%
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
59
Overall Confidence in Retirement Future [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Estimations of the Amount Neededfor Retirement
6060
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Prior to retiring, fewer than half of retirees calculated the amount ofmoney they would need to save for a comfortable retirement.
Yes No Don't Know
45%53%
2%
61
Did you calculate how much money you would need to save by the time you retired so you could livecomfortably in retirement? [50+ Retirees (n=499)]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Workers are more likely than retirees to have taken various measures toestimate their needs for a comfortable retirement.
62
Have you…?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Met with a professional financial advisor aboutretirement planning
Prepared a formal, written financial plan for retirement
Calculated how much you would need to save for acomfortable retirement
Calculated how much you (and spouse) would need tocover health expenses in retirement
Estimated how much income your (and spouse) wouldneed each month in retirement
Thought about how you would occupy your time inretirement
Estimated the amount of your Social Security benefit atyour planned retirement age
33%
24%
45%
37%
49%
59%
60%
39%
20%
57%
35%
66%
74%
63%
Workers(n=403)
Retirees(n=499)
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
The median amount of money that workers expect they will need toaccumulate prior to retirement so they can live comfortably in retirement is$250k - $499k.
Could not do calculation
Don't remember/know
Less than $100,000
$100,000-$249,999
$250,000-$499,999
$500,000-$749,999
$750,000-$999,999
$1 to $1.49 million
$1.5 to $1.9 million
$2 million or more
3%
8%
13%
15%
18%
14%
8%
11%
3%
7%
Esti
mat
edA
mo
un
tN
ee
de
dfo
ra
Co
mfo
rtab
leR
etir
em
en
t
63
How much do you think you will need to accumulate in total by the time you retire so that you can livecomfortably in retirement? [50+ Workers (n=392)]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Median Estimated Amount Neededfor a Comfortable Retirement:
$250,000 to $499,999
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
The amount that workers estimate they will need to accumulate prior toretirement so that they can live comfortably in retirement generallyincreases with household income.
Less than$50,000(n=105)
$50,000to $99,999
(n=120)
$100,000or more(n=128)
1% 5%8% 5%1%
27%13%
2%
37%44%
23%
18%18%
33%
4% 11%
27%
6% 4%13%
Household Income
$2 million or more
$1 to $1.9 million
$500,000 to $999,999
$100,000 to $499,999
Less than $100,000
Don't remember/Don't know
Could not do calculation
64
How much do you think you will need to accumulate in total by the time you retire so that you can livecomfortably in retirement? [50+ Workers who plan to retire and who estimated the amount they will need fora comfortable retirement (n=392)]
Median Estimated Amount Needed for aComfortable Retirement
Household IncomeLess than $50,000: $100,000 to $249,999$50,000 - $99,999: $250,000 to $499,999$100,000+: $250,000 to $499,999
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Saving for Retirement
6565
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Three in four workers (76%) and two in three retirees (65%) havepersonally saved for retirement.
[50+Workers] Not including Social Security taxes or employer-provided money, have you (and/or your spouse)personally saved any money for retirement? / [50+Retirees] Not including Social Security taxes or employer-provided money, did you (and/or your spouse) personally save any money for retirement before you retired?These savings could include money you personally put into a retirement plan at work.
66
50+ Overall(n=900)
50+ Workers(n=402)
50+ Retirees(n=498)
1%
29% 24%34%
71% 76%65%
Personally saved forretirement
Have not personallysaved for retirement
Don'tknow
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers, the likelihood of having personally saved for retirementtends to increase with total household income level.
Not including Social Security taxes or employer-provided money, have you (and/or your spouse) personally savedany money for retirement? These savings could include money you personally put into a retirement plan atwork. [50+ Workers]
67
Less than $50,000(n=107)
$50,000-$99,999(n=121)
$100,000 or more(n=129)
50%
19%2%
50%
81%98%
Household Income
Personallysaved forretirement
Have notpersonallysaved forretirement
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Workers are more likely than retirees to have an IRA, employer-sponsoredretirement savings plan and/or other personal savings and investments.
An IndividualRetirement Accountor IRA
Employer-ProvidedPension or CashBalance Plan
Employer-SponsoredRetirement SavingsPlan
Other PersonalSavings orInvestments
49%45%
24%
42%
55%
47%
28%
45%41%
43%
22%
38%
50+ Overall(n=876)
50+ Workers(n=397)
50+ Retirees(n=480)
68
Do you currently have …?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Slightly more than a third of 50+ workers and about half of retirees haveless than $25k in savings and investments.
50+ Overall(n=659)
50+ Workers(n=325)
50+ Retirees(n=334)
9% 7% 11%
22% 20%24%
12%11%
14%8%
5%
11%8%9%
6%9%9%
8%10%12%
9%
23% 27%17%
$250,000 or more
$100,000 to $249,999
$50,000 to $99,999
$25,000 to $49,999
$10,000 to $24,999
$1,000 to $9,999
Less than $1,000
Don't know
69
Median Savings and Investments
50+ Overall: $25,000 - $49,99950+ Workers: $50,000 - $99,99950+ Retirees: $10,000 - $24,999
In total, about how much money would you say you currently have in savings and investments, not including thevalue of your primary residence? [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
As workers’ and retirees’ total household income increases, the totalamount they have saved for retirement also tends to increase.
Less than$25,000(n=140)
$25,000 to$49,999(n=132)
$50,000 to$99,999(n=191)
$100,000 ormore
(n=151)
3% 7% 7% 4%
58%
17% 9%
16%
24%
8%
4%
10%
14%
7%
1%
4%
10%
13%
6%
4%
11%
13%
9%
3%
7%
18%
15%
2%10%
25%
61%
Household Income
$250,000 or more
$100,000 to $249,999
$50,000 to $99,999
$25,000 to $49,999
$10,000 to $24,999
$1,000 to $9,999
Less than $1,000
Don't know
70
In total, about how much money would you say you currently have in savings and investments, not including thevalue of your primary residence? [50+ Workers and Retirees]
Median Savings and Investments
Household IncomeLess than $25,000: Less than $1,000$25,000 - $49,999: $10,000 - $24,999$50,000 - $99,999: $50,000 - $99,999$100,000+: $250,000 - $499,999
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Workers believe they need to save about 27% of their total householdincome each year, on average, to live comfortably in retirement. More thana quarter overall don’t know how much they will need to save.
0% to 9% 10% to 19% 20% to 29% 30% to 39% 40% to 49% 50% ormore
Don't know
7%
25%
16%
7% 4%
13%
29%
71
About what percentage of your total household income do you think you (and your spouse) need to save eachyear from now until you expect to retire so you can live comfortably throughout your retirement? [50+ Workerswho gave an expected retirement age (n=393)].
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Mean Estimated Percentage of Total Household Incomethat Workers Believe They Will Need to Save Each Year
in order to Live Comfortably in Retirement
27%
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, men are more likely than women to havepersonally saved for retirement.
50+ Male Workers(n=176)
50+ Female Workers(n=226)
50+ Male Retirees(n=230)
50+ Female Retirees(n=268)
1%17%
29% 30%38%
83%71% 70%
61%
Yes
No
Don't Know
72
Not including Social Security taxes or employer-provided money, have you/did you personally saved any moneyfor retirement? [50+ Workers and Retirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
The large majority of both male and female workers say they are currentlysaving for retirement.
Overall(n=324)
Men(n=150)
Women(n=174)
11% 10%
89% 90% 88%
Yes
No
73
Are you currently saving for retirement? [50+ Workers]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
In the past year, 50+ workers saved an average of 17% of their totalhousehold income for retirement.
0% to 9% 10% to19%
20% to29%
30% to39%
40% to49%
50% ormore
Don'tknow
19%
35%
19%
5%1%
5%
16%
0% to 9%
10% to 19%
20% to 29%
30% to 39%
40% to 49%
50% or more
Don't know
About what percentage of your total household income did you save last year for retirement? [50+ Workersexpecting to retire at some point( n=287)].
74
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
Mean Percentage of Total Household IncomeSaved for Retirement in Prior Year: 17%
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
75
Among workers who say they are currently saving less than they think theyneed for retirement, the most-cited reasons are cost of living or day-to-dayexpenses.
Why are you currently saving less than you think you need to save for retirement? [50+ workers who think they aresaving less than needed for retirement, n=125]
Cost of living or day-to-day expenses
Not paid enough
Health costs or health insurance costs
Currently unemployed or underemployed
Education expenses
Paying off other debt
Don't know
Haven’t thought about it
Saving/have enough
Something else
Expenses related to providing care to someone else
Paying off mortgage/housing expenses
Other savings priorities
Don't have a retirement plan at work
34%15%
11%11%
9%8%8%7%7%6%
3%2%2%
1%Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
76
What do you think the impact will be of currently saving less than you need for retirement? [50+ workers whothink they are saving less than needed for retirement, n=125]
Don't know
Will have less to live on in retirement
Will need to retire later
Will need to save more later
Little/no impact
Will need to work in retirement
Difficult retirement
Less money for travel, entertainment
Something else
Will need to rely on others for financial support
Liquidate assets
25%
15%
13%
13%
12%
10%
8%
5%
4%
4%
0%
A quarter of workers who are currently saving less than they think they needto save for retirement say they don’t know what the impact of this will be.
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
(Multiple responses permitted)
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Married(n=377)
Widowed(n=101)
Divorcedor Single*
(n=181)
10% 16% 2%
15%16%
36%
11%13%
14%6%
12%9%
8%
7%7%
8%
11%9%
11%
9% 10%29%16% 12%
$250,000 or more
$100,000 to $249,999
$50,000 to $99,999
$25,000 to $49,999
$10,000 to $24,999
$1,000 to $9,999
Less than $1,000
Don't know
Workers and retirees who are married are more likely to have a greateramount of savings and investments than those who are widowed*, divorcedor single.
77
NOTE: Those who are widowed are significantly older, on average, than the other groups and are more likely to be retirees, which may affect their lowersavings amount as many may already be drawing down their savings while in retirement.
*Divorced or Single includes: Divorced or separated, not married and living with a partner, and single, never married.
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
In total, about how much money would you say you (and your spouse) currently have in savings and investments,not including the value of your primary residence? [50+ Workers and Retirees]
Median Savings and Investments
Married: $50,00 to $99,999Widowed: $25,00 to $49,999Divorced, Separated or Single: $1,000 to $9,999
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, the more favorably they rate their overall health,the higher their amount of retirement savings and investments tend to be.
78
In total, about how much money would you say you (and your spouse) currently have in savings and investments,not including the value of your primary residence? [50+ Workers and Retirees]
Poor/FairHealth(n=162)
GoodHealth(n=176)
Very GoodHealth(n=187)
ExcellentHealth(n=131)
9% 10% 8% 9%
44%
18%11% 6%
11%
16%
12%8%
10%
8%
7%
4%
6%
9%
11%
5%
7%
11%
9%
8%
5%
10%
16%
13%
8%20%
26%
47%
$250,000 or more
$100,000 to $249,999
$50,000 to $99,999
$25,000 to $49,999
$10,000 to $24,999
$1,000 to $9,999
Less than $1,000
Don't know
Median Savings and Investments
Poor/Fair: $1,000 to $9,999Good: $25,000 to $49,999
Very Good: $50,000 to $99,999Excellent: $250,000 to $499,999
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, as education level increases, the amount ofretirement savings and investments also tend to increase.
79
In total, about how much money would you say you (and your spouse) currently have in savings and investments,not including the value of your primary residence? [50+ Workers and Retirees]
High SchoolGraduate or Less
(n=179)
Vocational/Some College
(n=206)
Bachelor'sDegree(n=139)
Graduate orProfessional
Degree(n=135)
10% 8% 8% 6%
30%20%
10% 6%
15%
14%
6%6%
8%
9%
6%6%
9%
6%
10%4%
7%
13%
9%
5%
8%10%
14%
15%
12% 19%36%
51%
$250,000 or more
$100,000 to $249,999
$50,000 to $99,999
$25,000 to $49,999
$10,000 to $24,999
$1,000 to $9,999
Less than $1,000
Don't know
Median Savings and Investments
HS Graduate or less: $1,000 to $9,999Vocational/Some College: $25,000 to $49,999Bachelor’s degree: $100,000 to $149,999Graduate/Professional degree: $250,000 - $499,999
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Although retirees are more likely than workers to cite Social Security as amajor source of retirement income, Social Security is the most-cited majorsource of expected or actual retirement income for both groups.
50+ Workers planning to retire
at some point (n=348)
0% 20% 40% 60% 80% 100%
Employment duringRetirement
Other PersonalSavings or Investments
IRA
Employer-Provided Pensionor Cash Balance Plan
Employer-SponsoredRetirement Savings Plan
Social Security
23%
38%
35%
46%
27%
5%
62%
41%
41%
26%
31%
46%
14%
21%
24%
26%
41%
48%
Not a Source Minor Source Major Source
50+ Retirees (n=497)
0% 20% 40% 60% 80% 100%
Employment duringRetirement
IRA
Other PersonalSavings or Investments
Employer-SponsoredRetirement Savings Plan
Employer-Provided Pensionor Cash Balance Plan
Social Security
74%
55%
49%
58%
50%
6%
17%
24%
30%
19%
18%
29%
8%
18%
20%
20%
30%
64%
Not a Source Minor Source Major Source
80
[Worker: Do you expect the following to be]/[Retiree: Is] the following] a major source of income, a minor sourceof income, or not a source of income in your (and your spouse’s retirement)?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, women are more likely than men to cite SocialSecurity as a major source of expected or actual retirement income; whilemen are more likely to cite employment as a minor source of expected oractual retirement income.
50+ Men (n=390)
0% 20% 40% 60% 80% 100%
Employment duringRetirement
IRA
Other Personal Savings andInvestments
Employer-Provided Pensionor Cash Balance Plan
Employer-ProvidedRetirement Savings Plan
Social Security
43%
44%
39%
45%
40%
6%
45%
37%
39%
23%
25%
43%
12%
20%
22%
32%
35%
51%
Not a Source Minor Source Major Source
50+ Women (n=473)
0% 20% 40% 60% 80% 100%
Employment duringRetirement
Other Personal Savings andInvestments
IRA
Employer-Provided Pensionor Cash Balance Plan
Employer-ProvidedRetirement Savings Plan
Social Security
54%
48%
48%
53%
47%
5%
35%
33%
30%
21%
25%
33%
11%
18%
22%
26%
27%
62%
Not a Source Minor Source Major Source
81
[50+ Workers: Do you expect the following to be]/[50+ Retirees: Is] the following] a major source of income, aminor source of income, or not a source of income in your (and your spouse’s retirement)?
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers, seven in ten men and nearly two in three women thinkthey will work for pay after they retire.
82
Overall(n=373)
Men(n=164)
Women(n=209)
10% 12% 8%
22% 18% 26%
68% 70% 65%Yes
No
Don't Know
Do you think you will do any work for pay after you retire? [50+ Workers]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED 83
More than one in four workers with a retirement savings plan have taken aloan from the plan.
Yes No
27%
73%
Have you ever taken a loan from your current retirement savings plan? [50+ Workers; with a retirementsavings plan]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED 84
About half of workers and retirees have participated in a retirementsavings plan with a previous employer.
50+ Overall(n=900)
50+ Workers(n=401)
50+ Retirees(n=499)
1% 1%
49% 51% 46%
50% 48% 53%
Yes
No
Don't Know
Did you participate in a retirement savings plan with any of your previous employers? [50+ Workers andRetirees]
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Appendix
8585
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Analysis of Key Predictors: Overall Retirement Confidence
86
The purpose of the analysis was to identify demographic and other factors that are most strongly associated with overall retirement
confidence among workers and retirees age 50+. Overall retirement confidence is a composite score based on responses to seven
questions (i.e., their level of confidence that: 1) they will have enough money to live comfortably throughout retirement; 2) they will have
enough money to take care of basic expenses during retirement; 3) they did/are doing a good job of preparing financially for retirement; 4)
they will have enough money to take care of their medical expenses during retirement; 5) they will have enough money to pay for long-
term care, if needed, during retirement; 6) the Social Security system will continue to provide benefits of at least equal value to what
retirees receive today; and 7) the Medicare system will continue to provide benefits of at least equal value to what retirees receive today).
For this analysis, stepwise multiple regression was used. The specific variables entered into the regression were gender; age; education
level; employment status (i.e., full-time, retired, other); marital status (i.e., married, widowed, other); self-reported rating of overall health;
household income; total amount of savings and investments; whether respondent (or spouse) tried to calculate the amount needed for a
comfortable retirement; whether respondent (or spouse) has an IRA; whether respondent (or spouse) has an employer-sponsored
retirement savings plan; whether respondent (or spouse) has a defined benefit or pension plan; and whether respondent (or spouse) has
other retirement savings invested outside of an IRA or employer-sponsored retirement savings plan.
Below are the results from the regression analysis:
R =.589; R2 =.347; Adjusted R2 =.337.
Model:Overall Retirement Confidence
UnstandardizedCoefficients
StandardizedCoefficients
t Sig.Pearson
Correlation
SquaredSemi-partial
Correlation
StructureCoefficient(Pearson
correlationdivided by R)B
Std.Error Beta
(Constant) -.038 .051 -.742 .458
Zscore: Total Savings and Investments .217 .076 .194 2.868 .004 .481 0.024 0.816
Zscore: Self-Reported Rating of Overall Health .218 .053 .206 4.082 .000 .423 0.047 0.718
Zscore: Age .241 .050 .222 4.834 .000 .262 0.065 0.444
Zscore: Total Household Income .173 .071 .154 2.427 .016 .404 0.017 0.687
Zscore: Has Other Savings and Investments .137 .065 .118 2.116 .035 .392 0.013 0.666
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Appendix
YEAR 50+ WORKERS 50+ RETIREES 50+ OVERALL2004 247 217 4642005 346 251 597
2006 380 249 6292007 405 244 6492008 453 263 7162009 418 248 666
2010 390 248 6382011 441 245 6862012 465 247 7122013 477 247 724
2014 467 493 9602015 578 457 1,0352016 403 499 902
87
Worker and Retiree Counts by Year
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2016 Retirement Confidence Survey.