How Are Workers Preparing for Retirement?

In general, workers seem to begin preparing for retirement almost as soon as they get their first job. However, according to the 2021 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), retirement preparations do vary a bit by age group.

Retirement Preparations

Nearly three-quarters (72%) of workers say that they or their spouse have personally saved money for retirement. Not surprisingly, the older the respondents were, the more likely they were to report saving:

  • Age 25 to 34: 63%
  • Age 35 to 44: 71%
  • Age 45 to 54: 75%
  • Age 55 and older: 81%

In terms of amount saved, even many of those in the younger age brackets seem to be off to a good start.

 

Age 25-34 Age 35-44 Age 45-54 Age 55 and older
Less than $1,000 14% 11% 14% 11%
$1,000 – $24,999 20% 13% 10% 11%
$25,000 – $99,999 27% 20% 14% 12%
$100,000 –

$249,999

23% 25% 20% 15%
$250,000 or more 15% 30% 41% 51%

Although workers appear to be setting money aside for retirement, have they actually performed a calculation to determine how much they may need? Here’s the percentage for each age group that said yes to that question:

  • Age 25 to 34: 45%
  • Age 35 to 44: 47%
  • Age 45 to 54: 48%
  • Age 55 and older: 60%

EBRI also questioned workers about other ways they could prepare for retirement. Following is a breakdown of how each age group responded.

 

 

 

 

 

 

 

 

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Age 25-34 Age 35-44 Age 45-54 Age 55 and older
Considered how

much to withdraw from savings during retirement

34% 35% 43% 48%
Considered how one

would occupy time in retirement

45% 45% 55% 60%
Calculated how

much would likely be needed for health expenses

35% 32% 39% 48%
Estimated your

monthly income in retirement

42% 46% 49% 61%
Planned for how to

cover an emergency or big expense during retirement

41% 38% 43% 52%

 

Confidence in different aspects of retirement

Approximately seven out of 10 workers say they are very or somewhat confident in having enough money to retire comfortably. The results don’t vary too much when workers were asked about their level of confidence in specific aspects of retirement (responses represent the total responding “somewhat” or “very confident”).

 

Age 25-34 Age 35-44 Age 45-54 Age 55 and older
Have enough money

to last your entire life

65% 64% 62% 62%
Have enough money

to take care of medical costs

73% 64% 68% 66%
Have enough money

to pay for basic expenses

78% 76% 76% 79%
Doing a good job of

preparing financially for retirement

76% 70% 70% 71%

For more information on this year’s Retirement Confidence Survey, please visit www.ebri.org.

 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

 

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