US Workers Lose Hope in Secure Retirement, Foresee Benefits Cuts

Fewer workers and retirees are confident they will have enough money to live comfortably in retirement, according to a survey that also showed persistent concern about potential government changes to the retirement system.

The annual retirement confidence surveyfrom the Employee Benefit Research Institute and Greenwald Research found 61% of workers said they are very or somewhat confident in having enough money in retirement, down 6 percentage points from a year ago. Confidence among retirees fell 5 percentage points over the past year to 73%.

The survey of 2,052 Americans underscores growing concerns in the retirement industry that many workers aren’t saving enough to retire. The Trump administration has floated potential changes to increase worker access to 401(k) plans, and to broaden private asset investment options in retirement accounts.

“Americans are contending with a mix of immediate financial pressures and long-term uncertainty,” Craig Copeland, director of wealth benefits research at EBRI, said in a statement. “Many workers are struggling with debt, inflation and rising housing and health care costs, while retirees are increasingly worried about the future of Social Security and Medicare.”

The survey found 78% of workers are concerned the government will make significant changes to the retirement system, while 69% of retirees said the same. Workers and retirees both expressed declining confidence that Social Security and Medicare benefits would retain their value in the future.

Amid growing uncertainty about retirement costs, the survey found 84% of workers were very or somewhat interested in purchasing a guaranteed income product. Among workers who have a workplace retirement savings plan, roughly one-third said adding a lifetime income option would be a valuable addition to the plan.

The survey polled 1,007 workers over the age of 25, and 1,045 retirees. It was conducted in January.

Since the survey was conducted, President Donald Trump said during his State of the Union address that he would seek to offer Americans without an employer-sponsored 401(k) plan access to a retirement plan offered to federal employees, with a $1,000 annual government match. Few details about the proposal have emerged since the February speech.

The Labor Department in March proposed a rule that would provide legal cover for fiduciaries to add private equity, cryptocurrency, and other alternative assets to retirement plan investment menus.