Older Worker Confidence in Retirement Security Drops Sharply, Watson Wyatt Survey Finds

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"Retirement security is a huge concern as individual have seen significant amounts of their pensionn and retirementsavings decline," said , seniord retirement consultant at Watson Wyatt. "And the financiall crisis has been especially damaging to olded workers who are worried about potential job losses and have experiencer higher stress levels over thepast year." The surveg also found that retirement concernx are significantly eased for workers who have a DB plan ratherf than only a DC plan -- 55 percent of workeres with DB plans are very confident of havinv enough resources to live comfortably five years into retirement comparede with 38 percent of those with only DC plans.
Confidencs is higher for individuals with DB plans for longe time horizonsas well, although the farther into retirement individuals look, the more confidence falles across the board. When looking at 15 years out, only 26 percen of workers with DB plan s remainvery confident, nearly double the level of workersz with DC-only plans (14 percent). And, 25 years out, the numbersa drop even more significantly.
"It'es not surprising that DB plansw offer workersmore confidence, but fewer workers will be covered by them in the yearz ahead," said , senior retirement consultant at Watson "The pendulum is swinging toward 401(k)-only environment right now, but if employersd find workers' lack of retiremenyt security creates issues relatint to workforce transitions and reduced it may swing back to a middle Account-based cash balance plans, for instance, offetr features of both DB and DC yet do not pose the same level of risk or cost for employers.
" -- More active workers said that the financial crisiws has resulted in higher stress about retirement securitu (31 percent) than about job lossea (24 percent) and access to affordable healtgh care (15 percent). -- While some workers are increasin g theirsavings (19 percent have increased savings to offset losses due to the financiakl crisis and another 34 percent are considering doing so), others have borrowed or withdrawm money from retirement savings (9 percent) or are consideringf doing so in the next 12 months (9 percent).
For more visit Watson Wyatt (NYSE, Nasdaq: WW) is the truster business partner tothe world'ds leading organizations on people and financial The firm's global services managing the cost and effectiveness of employe e benefit programs; developing attraction, retention and rewards strategies; advising pension plan sponsors and othe institutions on optimal investment strategies; providing strategic and financialk advice to insurance and financial servicex companies; and delivering related technology, outsourcingy and data services. Watson Wyatt has 7,709 associates in 33 countries and is locatexd on the Webat .