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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 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

2


Table of Contents

3

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.


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)



• 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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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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AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED

Current Financial Situation

1010


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]

11

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


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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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


Among workers and retirees, women and men are equally as likely todescribe their level of debt as a problem.


13

50+ Men(n=403)

50+ Women(n=490)

58% 60%

33% 27%

9% 12%

A Major Problem

A Minor Problem

Not a Problem



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.

14


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



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.

15


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



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.

16

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




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.

17

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



Retirement ExperiencesCompared with Expectations

1818


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.

19

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%



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)]



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]

21



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.

22

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.)



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]


AARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED 24

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%



Expected and Actual Age ofRetirement

2525


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]

26

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



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%



On average, women expect to retire at a later age than do men.

Realistically, at what age do you expect to retire? [50+ Workers]

28

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



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]

29

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



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).


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).

31

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



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.

32

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



Levels of Confidence aboutRetirement and Related Areas

3333


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?



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


Don't Know

35

Overall, how confident are you about your ability to do a good job of preparing a budget?



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


Don't Know

36

Overall, how confident are you that can a good job deciding when to take Social Security benefits?



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


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?



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


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?



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


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


38%

Overall, how confident are you that you (and your spouse) will have enough money to live comfortablythroughout your retirement years?


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?



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


Don't Know

41


Overall, how confident are you that you (and your spouse) will have enough money to take care of your basicexpenses during your retirement?


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


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?



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


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?



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


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?



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


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?



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?


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

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ery

Co

nfi

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nt

50+ Workers

50+ Retirees



Since 2006 (with one exception in 2008), workers have felt less confidentabout having enough money to live comfortably in retirement than retirees.

47


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


Overall, how confident are you that you will have enough money to live comfortably throughout your retirementyears?


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


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

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ery

Co

nfi

den

t

Age 50-59Age 60-69Age 70+



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?


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



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?


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



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?


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


Key Predictors ofOverall Retirement Confidence

5252


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




*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%


Self-Reported Rating ofOverall Health

4.7%Household Income

1.7%


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


55

Overall Confidence in Retirement Future [50+ Workers and Retirees]



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


56




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


57




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


58




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


59




Estimations of the Amount Neededfor Retirement

6060


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)]



Workers are more likely than retirees to have taken various measures toestimate their needs for a comfortable retirement.

62

Have you…?


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)


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)]


Median Estimated Amount Neededfor a Comfortable Retirement:

$250,000 to $499,999


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



Saving for Retirement

6565


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



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



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 …?



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


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]



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]


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



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)].


Mean Estimated Percentage of Total Household Incomethat Workers Believe They Will Need to Save Each Year

in order to Live Comfortably in Retirement

27%


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]



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]



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


Mean Percentage of Total Household IncomeSaved for Retirement in Prior Year: 17%


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.


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.


(Multiple responses permitted)


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.


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]


Married: $50,00 to $99,999Widowed: $25,00 to $49,999Divorced, Separated or Single: $1,000 to $9,999


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


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


Poor/Fair: $1,000 to $9,999Good: $25,000 to $49,999

Very Good: $50,000 to $99,999Excellent: $250,000 to $499,999



Among workers and retirees, as education level increases, the amount ofretirement savings and investments also tend to increase.

79


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


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



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%


IRA

Other PersonalSavings or Investments

Employer-SponsoredRetirement Savings Plan


Social Security

74%

55%

49%

58%

50%

6%

17%

24%

30%

19%

18%

29%

8%

18%

20%

20%

30%

64%


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)?



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%


IRA

Other Personal Savings andInvestments


Employer-ProvidedRetirement Savings Plan

Social Security

43%

44%

39%

45%

40%

6%

45%

37%

39%

23%

25%

43%

12%

20%

22%

32%

35%

51%


50+ Women (n=473)

0% 20% 40% 60% 80% 100%


Other Personal Savings andInvestments

IRA


Employer-ProvidedRetirement Savings Plan

Social Security

54%

48%

48%

53%

47%

5%

35%

33%

30%

21%

25%

33%

11%

18%

22%

26%

27%

62%


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)?



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]


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]


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]



Appendix

8585


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



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


2016 Retirement Confidence Survey - aarp.org · Retirement Experiences • Nearly three in five...

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