The Employee Benefit Research Institute (EBRI) offers a range of programs to help individuals plan for a secure future.
Their Retirement Confidence Survey has been conducted annually since 1990, providing valuable insights into American workers' attitudes and behaviors regarding retirement.
One key finding from the survey is that many workers are not confident in their ability to retire comfortably, citing concerns about saving enough and managing healthcare costs.
To address this issue, EBRI provides educational resources and tools to help individuals make informed decisions about their retirement planning.
A unique perspective: Survey on Household Income and Wealth
History of EBRI
The Employee Benefit Research Institute, or EBRI, has a rich history that dates back to 1978. It was founded by a group of benefits-related companies following the enactment of the Employee Retirement Income Security Act of 1974.
The EBRI was established to serve a crucial purpose in the US economy. Employee benefit plans provide citizens with opportunities to achieve financial security, which is essential for their well-being.
The Institute's founding was a response to the growing need for objective and unbiased information about the employee benefits system. This need exists to this day.
By developing and disseminating information, the EBRI aims to further its members' common business interests.
Employee Benefits
The Employee Benefits section of the Employee Benefit Research Institute's data covers a specific time period. From 2009 to 2012, the institute collected and analyzed data on employee benefits.
During this time, the Employee Benefit Research Institute was actively researching and providing insights on various aspects of employee benefits. Their work helped inform employers and policymakers about the state of employee benefits in the US.
The institute's research during this period likely provided valuable information on how employee benefits were changing and evolving, which could have been useful for employers looking to update their benefits packages.
Curious to learn more? Check out: Federal Employers Liability Act
Programs and Initiatives
The Employee Benefit Research Institute (EBRI) has been actively involved in promoting savings and retirement planning through various programs and initiatives.
EBRI operated the Choose to Save national public education and outreach campaign, and the American Savings Education Council, a national coalition of public- and private-sector organizations that promote saving.
The Choose to Save initiative included the development of the Ballpark Estimate for ASEC, a two-page worksheet that identifies a person’s general savings target for a comfortable retirement.
A fresh viewpoint: How Long Do You save Bank Statements
This Ballpark Estimate is used as the retirement calculator for federal employees on the Office of Personnel Management’s Federal Ballpark E$timate website.
In addition, the U.S. Thrift Savings Plan also uses the Ballpark Estimate on its website.
In 2023, EBRI relaunched a new version of its Ballpark E$timate online retirement planning tool.
Consider reading: No Surprises Act Good Faith Estimate
Key Points and Statistics
According to the Employee Benefit Research Institute, 75% of respondents plan to work for pay in retirement. Many people want to continue investing or crave social interaction.
Of the retirees who have taken on jobs, a whopping 89% say working allows them to remain active and involved. This is a significant reason why many people choose to work in retirement.
Nearly as many, 88%, say they like having a job. It's clear that working in retirement can bring a sense of purpose and fulfillment.
A full 83% find their work rewarding. This is a testament to the positive impact that work can have on one's life, even in retirement.
Here are some key statistics on why retirees work:
- 89% of retirees who work say it allows them to remain active and involved.
- 88% of retirees who work say they like having a job.
- 83% of retirees who work find their work rewarding.
Financial Assistance
Forty percent of Americans need to work after retirement to make ends meet, covering everyday expenses. This is a common reality for many people.
For those who retire before they're eligible for Medicare, having access to insurance is still a necessity, with 16% of respondents citing this as a reason to continue working.
Need for Assistance
Many people need help making ends meet after retirement. 40% of respondents say they need the income to cover everyday expenses.
For some, working after retirement is a necessity, not a choice. They need access to insurance, especially if they retire before they're eligible for Medicare.
Healthcare costs can be a significant burden, and a job can provide the necessary coverage. 16% of respondents still need access to insurance after retirement.
Having a steady income can also give people peace of mind and a sense of security.
Plan to Invest
Planning for the future is a big part of financial stability, and many people continue to invest even after retirement.
26% of individuals took on a post-retirement job specifically to continue investing.
For some, this means investing in individual stocks that appeal to them, while others may focus on building up a Roth IRA.
Growing their money somewhere else is also an option for some, showing that there's no one-size-fits-all approach to investing.
Some people are motivated to continue investing because they want to leave a financial legacy for their loved ones.
Others do it to maintain their standard of living, knowing that their investments can help supplement their retirement income.
Investing can be a great way to stay engaged and active in your finances, even after you've stopped working.
Insurance and Planning
For many retirees, the need for insurance doesn't disappear after they stop working. Still, 16% of retirees need access to insurance, highlighting the importance of planning for healthcare costs.
Working after retirement can provide a solution for this need, and many retirees find it appealing. If you're one of them, you're not alone - a surprising number of post-retirement workers are happy to be back in the workplace.
This means considering the pros and cons of working after retirement, including the potential impact on your insurance needs. For those who do choose to work, it's essential to weigh the advantages of additional income and social interaction against the potential drawbacks, such as a loss of personal time and freedom.
Ultimately, the decision to work after retirement is a personal one, and it's crucial to prioritize your own needs and goals.
See what others are reading: True Potential
Featured Images: pexels.com
