Consumers’ Retirement Outlook at Historic Low
14% Confidence Mark Underscores Need for Sen. De Leon’s SB 1234
SACRAMENTO – Only 14% of U.S. workers are certain they will have enough to live on comfortably in retirement according to a survey released today by the Employee Benefit Research Institute (EBRI) marking a drop from 2007 when the figure hit a high of 27 percent in the annual assessment, which is the longest running retirement survey of its kind in the nation. Senator Kevin de León and Senator Darrell Steinberg have introduced Senate Bill (SB) 1234 – the California Retirement Savings Act to help address this mammoth challenge.
“Consumers are very aware of this challenge but aren’t responding by saving more. They simply are downgrading their financial outlook because they see no alternative,” said Senator De León. “As the survey’s author indicates, if an employer doesn’t offer a plan, people are not saving. SB 1234 gives people the opportunity to take personal responsibility for their retirement by providing a simple plan for the worker and employer to institute a savings option.”
Adding to the concern, the report noted that 60% of workers have less than $25,000 in savings and investments and 30% have less than $1,000. The full EBRI survey can be found by clicking on the PDF below.
SB 1234 is double-referred to the Senate Public Employment and Retirement Committee and to the Senate Labor and Industrial Relations Committee. It will be heard in Committee before the end of April.