More than three in four workers continue to fund an employer-sponsored retirement plan, according to a new report.
Transamerica Center for Retirement Studies, Los Angeles, disclosed this finding in its 13th Annual Transamerica Retirement Survey. The online survey polled a nationally representative sample of 3,609 full- and part-time workers ages 18 or older using a Harris online panel.
Despite the Great Recession, the report says, workers remain committed to saving for retirement in company-sponsored 401(k) plans and similar arrangements. The participation rate in employee-funded retirement savings plans is 77%, down marginally from the 2011 rate of 78%, but on part with rates in 2007, 2009 and 2010.
The median percentage of salary being saved among employee-participants is 7% in 2012, the survey notes. This is up slightly from 2011 and 2010), but down from the 2007 rate of 8%.
Relative to the start of recession beginning in 2008, however, worker confidence in their retirement outlook has declined. More than 6 in 10 (64%) are less confident. And 42% of workers expect to work longer and retire at an older agent.
Additionally, nearly half (47%) of workers in their fifties expect to work longer and retire later, the report says. Significant percentages of respondents in their forties (43%) and sixties (39%) also expect to worker longer and retire at an older age.
Just over half of the survey respondents are somewhat confident (42%) or very confident (9%) that they will be able to retire with a comfortable lifestyle, the report adds. This compares with nearly 6 in 10 (59%) who voiced confidence in 2007.
Only 39% of workers agree—including 10% who strongly agree and 29% who somewhat agree—that they are building a large enough retirement nest egg. The percentage of those in their twenties who express some degree of confidence is about the same (38%) as those in their fifties (39%).
More than half of workers polled (56%) say they plan to work past retirement. Of these, nearly one in ten intend to work full-time (11%) and one in five plans to work part-time (19%). Additionally, 40% of respondents say they plan to retire after age 65; and 16% say they do not plan to retire.