Tags: Workers | Insecure | Benefits | economy

Poll: Workers Feel More Insecure Than Ever Over Benefits

Wednesday, 29 February 2012 07:51 AM

The economy may be on the mend but isn't strong enough to allay fears among workers that cuts to retirement benefits loom while out-of-pocket healthcare costs are set to rise, a survey by retirement consulting firm Towers Watson finds.

According to the survey, 55 percent of workers say they are willing to give up some of their future pay increases in order to have more guaranteed income in retirement, USA Today reports.

Fifty percent say they'd trade a portion of their pay to ensure healthcare benefits.

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"This may reflect their firsthand experience with financial market volatility, continuing worries about the economy and fears of future cutbacks to benefits," says Kevin Wagner, Towers Watson senior retirement consultant, according to USA Today.

Other experts agree that more and more Americans are realizing that retirement as they know it is changing.

In 2011, workers were more pessimistic about having enough money for a comfortable retirement than at any time in the two decades, says Nevin Adams, co-director of EBRI Center for Research on Retirement Income.

"We expect that the 2012 results, slated to be published in March, will echo those sentiments," says Adams, USA Today adds.

A recent poll of wealthy Americans, defined as having $250,000 in investible assets, shows most support raising the Social Security retirement age because people are living longer, a Bank of America survey finds.

Social Security lets recipients take reduced payments as early as age 62 and provides full benefits at age 66 and increases payouts for those who wait until age 70.

"Many don’t think they’ll start taking benefits until later," says David Tyrie, head of personal wealth and retirement for Bank of America Merrill Lynch, according to Bloomberg.

"They’re living longer and are still working or plan to be working when they become eligible, and don’t need it yet."

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Wednesday, 29 February 2012 07:51 AM
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