Industry News

Recently, the Employee Benefit Research Institute (EBRI) published its report, 2023 Retirement Confidence Survey Summary Report. The 33rd annual survey found that the overall confidence of workers and retirees in retirement security has declined. Due to continuing inflation and the stock market decline in 2022, the confidence of American workers and retirees about their retirement prospects has been significantly impacted similar to that during the Great Recession in 2008.

About 33% of workers and 24% of retirees report being less confident with 33% of workers and 50% of retirees citing inflation and cost of living as the primary reasons for the decline in confidence. Both workers and retirees report high concerns about inflation and its effect on their savings and spending.  

According to the survey, 73% of retirees are confident in their ability to live comfortably throughout retirement, down from 77%. In addition, about 64% of workers are confident they will be able to retire comfortably, down from 73% in 2022. 

The survey indicated that only 33% of workers and 40% of retirees use a personal financial advisor for retirement planning information and advice. Notably, most workers reported not being satisfied with their workplace retirement planning information as well as the tools and resources available. About 40% of workers rely on family or friends for financial and retirement planning advice and only 20% seek information from their workplace retirement plan provider. 

About 84% of workers and 67% of retirees are concerned about rising living costs that may make it more difficult to save money. Nearly 90% of workers are concerned that inflation will remain elevated for another year, and 80% are concerned about additional interest rate increases and possibly a recession occurring in 2024.

In addition, the level of confidence among workers and retirees for Social Security continuing to offer benefits of at least equal value to those received today remains comparable with last year. However, confidence in Medicare among workers has significantly decreased to 51%, down from 57% in 2022. Overall, the survey found that about 77% of retirees and 67% of workers feel confident they will have enough money to pay medical expenses in retirement. 

The summary report is available here.