There was a survey that was recently taken by the Employee Benefit Research Institute. People were asked if they were confident that they will have enough money to live on when they retire. Eighty percent of people stated that they were comfortable enough to live on during retirement. The number has not been that high since 2005.
In 2005, 80 percent of people stated that they confident that they would be able to make their money last throughout retirement. Craig Copeland is the senior research associate for the Employee Benefit Research Institute. He said that we have worked our way back to the 2005 levels. He also said that the trend is moving up.
In 2005, 40 percent of the people surveyed said that they were very confident that they would have enough money to live comfortably during retirement. Today, 35 percent of people are very confident that they can live comfortably. Retirees also believe that they will be able to better handle expenses that they have during retirement such as health care.
Craig was asked if he believed that there would be a retirement crisis. He said that there could be a crisis if benefits are reduced or cut. There was a report that was released by the Social Security Board of Trustees that showed that its two funding sources may be depleted by the year 2035. There is a source funding source that pays for disability benefits. The other one pays for retirement benefits. Researchers are predicting that 80 percent of the benefits will be paid before the funds get depleted.
Stephen C. Goss is the chief actuary of the Social Security Administration. He stated that the Disability Insurance Trust Fund will be gone by the year 2032. He also said that 91 percent of the benefits in the fund will still be payable.
Most people still plan to work after they retire. According to the survey, 80 percent of people will work after they retire. However, only 28 percent of people get a job after they retire.
Workers also plan on working longer. The median age of retirement is 62. However, most people plan on working until they are 65. Forty percent of people are forced to stop working early due to an illness or disability. The report showed that many people do not plan for events that are out of their control.
Sixty-six percent of people stated that they would need $1 million or less to live on during retirement. Thirty-four percent of people said that they would need $1 million or more. Sixteen percent of people stated that they would need $250,000 to 500,000. Seventeen percent of retirees said that they would need $1 to 1.5 million.
Craig said that the report shows that people are taking a realistic look at their circumstances. He also said that Social Security benefits can replace a large portion of your benefits if you are a low-income earner. Your benefits will depend on the amount that you earned throughout your entire life. This number will be different for everyone.
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