Retirees and workers are both more confident about their ability to live comfortably throughout retirement, according to the 29th Retirement Confidence Survey released by the Employee Benefit Research Institute (EBRI).
Eighty-two percent of retirees are optimistic about a comfortable retirement, which is a record high and up from 75% last year, while 67% of workers feel that way, up from 64% previously. In both cases the confidence level had rebounded to levels like those that existed in 2005, before the great financial crisis.
Greater confidence in the ability to handle medical expenses in retirement underpinned the increase in confidence for both retirees and workers. Retirees also reported fewer than expected higher expenses for health care, long-term care and other needs. Workers anticipate staying in the job market to fill spending gaps.
The EBRI study, conducted in concert with the research firm Greenwald & Associates, surveyed 1,000 retirees and 1,000 workers age 25 and older online in January, months before the government announced its latest fiscal projections for the Social Security and Medicare Trust Funds.
(Related on ThinkAdvisor: Social Security Trust Fund Set to Go Bust by 2035)