Welcome!

News Feed Item

2014 Retirement Confidence Survey

Confidence Rebounds--for Those in Retirement Plans

WASHINGTON, March 18, 2014 /PRNewswire/ -- A new survey says Americans' confidence in their ability to afford a comfortable retirement has recovered slightly from the record lows of the past five years—primarily among those participating in retirement plans. But overall, actual preparations for retirement haven't improved.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/64628-2014-principal-financial-group-ebri-retirement-confidence-survey

The Retirement Confidence Survey, released by the nonpartisan Employee Benefit Research Institute (EBRI) in Washington, and co-sponsored by the Principal Financial Group®, finds:

  • Eighteen percent of workers are now very confident, up from 13 percent in 2013
  • Retiree confidence increased even more with 28 percent now very confident, up from 18 percent in 2013

The increase in confidence was almost exclusively among those with higher household income and those participating in a retirement plan—defined contribution, defined benefit, or individual retirement account (IRA). The percent of workers in a plan who are very confident increased from 14 percent in 2013 to 24 percent in 2014. Only nine percent of those not in a plan were very confident, essentially unchanged from 10 percent in 2013. Workers without a plan are four times (46 percent) more likely to say they are not at all confident about retirement than those with a plan (9 percent).

Overall reported worker savings remain low and only a minority appear to be taking basic steps to prepare for retirement. Managing daily expenses and the cost of living are the number one reasons workers give for not saving more. Debt is a problem for 58 percent of workers. The exception is among those who have taken some kind of action to plan and save.

"Our analysis shows those who are participating in a retirement plan, have calculated their savings need or worked with a financial professional are not only more confident, they have less debt and higher levels of savings," said Greg Burrows, senior vice president of retirement and investor services at The Principal®. "Having a plan for both spending and saving can help manage short term needs and pave the way for more security in the future. The key is to take action."

The Principal analysis of the survey data found those in a retirement plan were twice as likely to calculate their retirement need, receive investment advice from a financial professional and report they retired as planned.

Among other key findings available on the EBRI website at www.ebri.org:

  • Workers have high savings goals: Twenty-two percent of workers say they need to save between 20 and 29 percent of their income. Another 22 percent indicate they need to save 30 percent or more. However, those without a retirement plan (IRA, defined contribution, or defined benefit) are more likely to set the target at 50 percent of income or to say they don't know how much they need to save.
  • Most haven't calculated savings needs. Only 44 percent of workers report they and/or their spouse have tried to calculate how much money they will need to have saved for a comfortable retirement. But workers who do, tend to have higher levels of savings and confidence than those who have not.
  • Best laid plans: Sixty-five percent of workers expect to work for pay in retirement but only 27 percent of retirees report they actually do work for pay in retirement. Nearly half say they retired earlier than planned due to health reasons.

Download the infographic and view the full results at www.principal.com/banners/landing/2014-retirement-confidence-survey.htm or www.ebri.org.

For more news and insights from The Principal, connect with us on Twitter at http://twitter.com/ThePrincipal.

About the Retirement Confidence Survey
This is the 24th annual Retirement Confidence Survey, making it the longest-running annual survey of its kind in the nation. The Retirement Confidence Survey is conducted by the nonpartisan Employee Benefit Research Institute (EBRI) and Mathew Greenwald and Associates. The Principal Financial Group is among about two dozen organizations that provided funding for the survey.

About the Principal Financial Group
The Principal Financial Group® (The Principal®)[1] is a global investment management leader offering retirement services, insurance solutions, and asset management. The Principal offers businesses, individuals, and institutional clients a wide range of financial products and services, including retirement, asset management, and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $483.2 billion in assets under management[2] and serves some 19.4 million customers worldwide from offices in Asia, Australia, Europe, Latin America, and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit principal.com.

t1403160172

[1] "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

[2] As of December 31, 2013.

Retirement Reality Check

 

Greg Burrows, Senior Vice President, the Prin cipal Financial Group

 

Survey says retirement confidence rebounds. More at principal.com and ebri.org

 

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/64628-2014-principal-financial-group-ebri-retirement-confidence-survey

SOURCE Principal Financial Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...