The Employee Benefit Research Institute (EBRI) does an annual study called the Retirement Confidence Survey (RCS). The RCS typically shows that Americans are not saving enough for retirement and that many people simply have no idea how much they need to save. The 2011 study is no exception. Among other things, the RCS asks participants how they are estimating how much they need to save and where their current estimates fall.
The 2011 survey finds:
- Only 42% of workers have even tried to calculate how much they need to accumulate in order to retire
- 31% of workers think that they can retire with total savings of $250,000 or less
- 19% of workers think that they can retire with total savings of $250,000 to $500,000
These numbers are pretty close to the RCS findings in the past, and the longer these numbers hold, the more it is clear that the self-directed retirement planning process is not succeeding. Continue reading