Tuesday, April 04, 2006

Workers Have Retirement 'Overconfidence'

NEW YORK - The majority of American workers think they'll be able to retire comfortably, but most aren't saving nearly enough to meet that goal, according to a new study.
The Employee Benefit Research Institute's annual retirement confidence survey, released Tuesday, found that about 68 percent of workers are confident about having adequate funds for a comfortable retirement, up slightly from 65 percent in 2005.
At the same time, more than half of all workers say they've saved less than $25,000 toward retirement, according to the Washington, D.C., based research group. Even among workers 55 and older, more than four in 10 have retirement savings under $25,000.
"`Overconfidence' is the word that comes to mind," said Jack VanDerhei, co-author of the study.
He said that the poor savings performance was especially troubling because it comes as many of the nation's employers are eliminating the defined benefit plans — better known as pensions — that have buoyed the retirements of current workers' parents and grandparents. Many companies also are eliminating retiree health care coverage or asking retirees to contribute more for it.

That isn't even enough to cover their credit card debt.
If the Bush administration's inflation policy is successful, $25,000 might be enough to buy groceries for a couple of months.. maybe it will cover your electricity bill for the year but i doubt it..
another puke factor setting in..

note to self: pay off debt and save cash

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