Expectations for a comfortable retirement have dampened a bit, according to the latest “EY Financial Wellness Assessment,” still many working-age Americans remain positive about their finances. The study, published by Ernst & Young LLP’s Employee Financial Wellness services, reports the self-described behavior and confidence of U.S. working adults. Fielded from May through July, it is the firm’s third set of such numbers since the inaugural assessment in February. The purpose of the studies is to help employees assess their own financial health based on the responses, EY says.
Overall, the retirement picture for the 3,000-plus respondents, most of whom work for large corporations or nonprofits, was mixed. Forty-three percent said they are confident they’ll be on track for a comfortable retirement, 8% less than in February. Six percent contribute nothing to a retirement savings plan such as a 401(k), 403(b) or other type of workplace plan; 14% contribute 3% or less.
Less than half have crunched the numbers to gauge their retirement readiness: Forty-five percent said that, within the past year, they had estimated what they will need once they retire. As many as 37% of workers over 50, though, have yet to perform that task, the study says. Forty-one percent of younger Millennials, 18 through 25, have at least started thinking about planning for that time.
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