Workers are less confident about their ability to sock away enough money for their old age than they were a year ago, according to the results of a survey announced by the Employee Benefit Research Institute, Matthew Greenwald & Associates Inc., a polling firm, and the American Savings Education Council, a coalition of organizations aiming to boost the nation's paltry savings rate.
More than one-third of working Americans and about one-fourth of retirees said they do not believe they will have enough money to live comfortably in their old age, according to the survey of 1,000 people chosen randomly.
That's up from 24% of workers and 22% of retirees surveyed last year who lacked confidence in their ability to save for old age.
"It's surprising that it hasn't changed more," Dallas Salisbury, EBRI president told Pensions & Investments, considering the spotlight on the financial troubles of the Social Security system in the past year.
Not surprisingly, few young Americans have any faith in the Social Security system, with only 3% fully confident that the system will work for them, and another 17% putting some hope on the system.
In 1992, one-third of workers were confident about the system.
Mr. Salisbury takes the contrarian view that this bad news is actually a good thing because it will spur people to save more on their own for their old age and be less reliant on government handouts.
In fact, the survey highlights this. More younger Americans (33%) are knowledgeable about personal finance, than retirees (23%).