Retirement Crisis Ahead for Boomers and Gen Xers as Many Keep Their Heads in the Sand

A new report released by the Employee Benefit Research Institute (ERBI) this month. Its title is “ERBI’s 2013 Retirment Confidence Survey: Perceived Savings Needs Outpace Reality for Many”

This new survey echos other surveys that have forecast a bleak picture for Americans planning to retire in the next decade or two.  In particular, this new Retirement Confidence Survey (Employee Benefit Research Institute and Mathew Greenwald & Associates) found:

1. Only two-thirds of workers reported that they and/or their spouse have saved money for retirement, down from 75% in 2009, probably due to the depressed economy.
2. 57% of workers have less than $25,000 saved, not including the value of their primary residence, and only 24% have savings of greater than $100,000.
3. Denial is not a river in Egypt – only 46% of respondents have even tried to figure out how much savings they will need to live comfortably in retirement!

Tragically, Americans will continue to experience a rude awakening as they begin their “golden years”, which might be more accurately labeled as their “desperate years.”  And, of course, if they have not included long-term care insurance in their retirement planning, they may see what little they have saved for retirement disappear in less than a year if they need care!