The percentage of workers who feel confident about their retirement security rebounded last year as Wall Street rallied, but the outlook remains bleak for workers without retirement benefits.
Thirty-six percent of workers have less than $1,000 in savings and investments for retirement, according to the 2014 Retirement Confidence Survey from Employee Benefit Research Institute. This is an increase from 28% in 2013.
Jack VanDerhei, the institute’s research director and co-author of the study, says that more than 70% of workers without a retirement plan like a 401(k) or IRA have less than $1,000 to fund their golden years. “If workers don’t have something provided by their employer, this means that they are saving virtually nothing on their own.”
Workers without a plan are four times as likely to report not feeling at all confident about their future financial security, the survey shows. Nearly 24% of those with a 401(k), pension or IRA plan described themselves as “very confident,” compared with 9% of those without a plan.