Biggest Insights from the 2024 EBRI Retirement Confidence Survey

About the author: Lamar Watson, CFP®, is a Fee-Only Financial Advisor in the Washington, D.C., area who works with clients virtually across the country. Dream Financial Planning is a Fiduciary Financial Planning firm specifically designed to help individuals at any stage of life take control of their finances and fulfill their dreams. Feel free to schedule a Free Consultation to learn how we use the DREAM Financial Planning Process ™ to help our clients achieve their goals. 

The Employment Benefit Research Institute (EBRI) conducts its Retirement Confidence Survey every year, which assesses Americans' attitudes and behaviors about retirement planning.

Let’s examine some of this year’s survey's biggest insights to see how workers and retirees feel about retirement.

What is the EBRI Retirement Confidence Survey?

Before we dive into the findings from this year’s survey, let’s explain what the survey is.

The Employee Benefit Research Institute (EBRI) Retirement Confidence Survey is an annual study that assesses American workers' and retirees' attitudes and behaviors regarding retirement planning and preparedness. Conducted since 1990, it is one of the longest-running and most comprehensive surveys of its kind, offering valuable insights into the public’s confidence in their ability to retire comfortably.¹

The survey evaluates various aspects, including savings habits, retirement expectations, and the role of employer-provided benefits. By analyzing trends over time, the EBRI Retirement Confidence Survey helps policymakers, employers, and financial advisors understand the factors influencing retirement readiness.

Biggest Insights From the 2024 EBRI Retirement Confidence Survey

Let’s look at some of the most significant insights from this year’s Retirement Confidence Survey. The 2024 survey of 2,521 Americans was conducted online from January 2 through January 31, 2024. All respondents were ages 25 or older. The survey included 1,255 workers and 1,266 retirees.¹

The Majority of Respondents Are Optimistic About Retirement Savings
68% of workers and 74% of retirees are confident they will have enough money to live comfortably throughout retirement.²

Social Security Remains the Top Source of Actual and Expected Income for Americans in Retirement
Most workers (88%) expect Social Security to be a source of income in retirement. Nearly all retirees (91%) report Social Security as a source of income.

However, nearly twice as many retirees (62%) report Social Security as a major income source than workers (35%) expect it to be.

Other related findings about Social Security: 

• Two-thirds of workers and three-quarters of retirees understand Social Security and the various employment and claiming decisions that impact their retirement benefits at least somewhat well.
• Workers expect to claim Social Security as soon as they retire but also expect to work for pay in retirement.

Americans Want to Save More for Retirement
After trying to calculate how much money they will need in retirement, 52% of workers and 44% of retirees started to save more. This renewed interest in saving is spurred by the drastic difference in what Americans believe they will need for retirement compared to how much they have saved.

Workers Would Like Help Saving for Emergencies Through Their Retirement Plan
Two-thirds of workers and almost three-quarters of retirees believe they have enough savings to handle an emergency expense. That being said, the ability to save for emergencies is at the top of workers’ list of valuable improvements they would like to see be made to their retirement savings plan.

While Expenses in Retirement are Higher Than Some Retirees Originally Anticipated, Retirees’ Lifestyle in Retirement is Better Than They Expected
Over a third of retirees say their travel, entertainment, or leisure expenses are higher than expected. While half say their overall expenses in retirement are higher than they initially expected, nearly four in five say they can spend money how they want within reason.

A third of retirees believe their overall lifestyle in retirement is better than expected. Over two-thirds agree that they are living the retirement lifestyle they envisioned, and 25% strongly agree with the same statement.

These insights are interesting because they reflect our thoughts about retirement planning and the broader economic landscape. Survey respondents consider current wages, inflation, Social Security, and more. Every retirement planning journey looks different, but the Retirement Confidence Survey helps us understand these more significant trends.

Different Ways You Can Work With Us

Wealth Management - Combines ongoing financial planning and investment management. The financial planning fee is waived if we manage at least $1,000,000 in investments for you. You can review our investment management fee structure here. Tax Preparation and the ability to create a Will or Revocable Trust-based Estate Plan will be included.

Ongoing Financial Planning - Starting at $400/month, our most popular program now includes tax prep. This is a good fit if you have several goals and want the option to manage your investments. We'll cover everything from spending, insurance, taxes, investments, retirement planning, and estate planning. Our goal is to give you and your family an easy-to-understand comprehensive plan to provide you with confidence you're making the right financial decisions.

One-Time Financial Plan With Ongoing Support - Starting at $4,800, this is an accelerated version of the service above with additional support for one year after your start date. This service requires prepayment for the year and is offered at a significant discount from the annual pricing for ongoing planning. Tax Preparation and the ability to create a Will or Revocable Trust-based Estate Plan will be included.

Tax preparation is now part of the ongoing financial planning program. This will be in addition to the Tax Report we already generate for clients and our work with the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill.

Three-Hour Ask Me Anything - This is a good fit if you have 2-3 goals you want help with. These three one-hour meetings need to be completed within three months. The fee for this service is $2,000. You also get a free 30-minute meeting to help us get started.

Financial Coaching - Our financial coaching program starts at $99/month. This is ideal for someone who is looking to simplify and automate their finances. We'll also serve as an accountability partner and help you overcome obstacles that may be stopping you from accomplishing your goals. You can learn more about our coaching program here. If you think this program might be a good fit for you, schedule a 15-Minute Demo.

Hourly Financial Planning -Billed at $400 per hour. For each hour of meeting time, we'll bill at least one additional hour for meeting preparation and follow-up.

Our Full-Service Process For New Clients

Net Worth and Budget

The first thing I do for new clients is assess their current financial situation. We do this with the aid of financial planning software. We review assets, liabilities, income, and expenses. If you'd like to test drive my comprehensive financial planning software, visit Right Capital and create a profile. View this Right Capital video to learn more.

Insurance

As a Fee-Only Firm, we don’t sell insurance or charge commissions. However, we like to review home, auto, and umbrella insurance to make sure you have the proper coverage. We’re happy to work with your existing agent or refer you to an independent broker to make sure you get the best deal. We also look at your employee benefits, long-term and short-term disability insurance, along with life insurance to make sure your family is protected.

Tax Preparation and Tax Planning

Tax preparation is now part of the ongoing financial planning program. This will be in addition to the Tax Report and Tax Planning we already generate for clients. We also use the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill.

Investments

Whether you want us to manage your investments or you want to manage them yourself and you're just looking for a second opinion, we can help. We'll help you optimize your investments to make sure you’re not leaving any money on the table. Here’s an example of the quantitative analysis I can do for your investment accounts where we also evaluate your current fees.

If you’d like to review your risk tolerance, complete our risk tolerance questionnaire. This will give you your personalized risk number as seen on page 1 of the sample portfolio above. Feel free to check out the article 10 Best Tips for Beginning Investors from U.S. News where I shared a few investment tips.

Retirement Planning

This is where we bring everything together. Take a look at the links below for examples of some of the deliverables we prepare for clients.

• Get Your Free Retirement Check Up
• Elements® Financial Monitoring App
• One Page Financial Plan
• Financial Independence Presentation

Estate and Legacy Planning

If you're looking for a cost-effective solution to get your estate planning documents in place, we can help. We have partnered with a leading Estate Planning platform to deliver high-quality Estate Planning documents for a fraction of the cost of working with an attorney. I included a blog post below that highlights the key documents that should be in your Estate Plan and my normal pricing.

What's In Your Estate Plan?

Revocable Living Trust-Based Estate Plan

• Individual - $1,600
• Couple - $2,100

Will-Based Estate Plan

• Individual - $900
• Couple - $1,400

I hope we get the opportunity to work together. If you'd like to see if any of these services are a good fit for you, feel free to schedule a free consultation or send me an e-mail.

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