US employees who save for retirement through their employers’ 401(k) plans are not planning to save more for retirement over the next year as compared to last year. And those closest to retirement are decreasing their planned savings, despite increasing concern about health care costs in retirement. So says the 2013 Mercer Workplace SurveyTM of 1,506 US retirement plan participants who also receive health benefits. Amid general optimism about the economy, survey participants over age 50 have lowered their anticipated 401(k) contribution amount by more than 18%.
“What we see in the attitudes of retirement plan participants is that they are not feeling the rewards of an improving economy in their own personal situation and therefore seem hesitant or feel unable to give up access to immediate cash in order to save for the future,” said Dave Tolve, Defined Contribution Business Leader for Mercer’s administration business.
“Savings rates obviously tie to, and build, participants’ expectations for retirement — and right now, those expectations aren’t great,” he adds. The survey shows that participants are worried about paying their future bills — including paying for health care in retirement — and are planning to work longer.
Learn more about trends in workforce retirement savings.
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For more information and to download the survey summary, visit http://www.mercer.com/