Confidence among U.S. workers in their retirement prospects plummeted -18.2% this year to a four-year low.
One in five working Americans now say they do not plan to retire at all, according to a survey by Sun Life Financial.
Retirement confidence levels had remained level for the past three years as measured by Sun Life’s Unretirement Index, a survey of nearly 1,500 workers. On a scale of 1 to 100, the index fell from 44 in September 2010 to 36 in September 2011.
All five subject areas covered by the poll fell this year, including employee benefits (-31.7%), the economy (-25.0%), government benefits (-21.6%), personal finances (-13.9%), and personal health (-13.2%).
Only 23% of working Americans feel very confident that they will meet basic living expenses in retirement, a huge drop from 42% last year.
Confidence in the future of Social Security fell to just 9%, continuing a steady plunge from 22% in 2008. Confidence about receiving adequate Medicare benefits has fallen to 8% from 20% in 2008.
The respondents who felt most confident about their retirement are those who expect to receive guaranteed lifetime income from annuities by age 67, or who own long-term care insurance products.
Wes Thompson, president of Sun Life Financial U.S., said in a written statement, “We believe the higher confidence of respondents across all wealth levels who own either variable annuities or long-term care insurance vehicles provides a positive wake-up call: Americans can take action to help secure their future and feel more secure about their golden years.”
