Confidence Drops About Financial Security in Retirement

Updated July 2026

Economic uncertainty kept chewing away at Americans’ confidence in their own retirements throughout 2011. Sun Life Financial’s annual Unretirement Index survey found that confidence in stability and financial security in retirement had dropped nearly 20% in a single year. The index came from polling 1,499 Americans between the ages of 18 and 66, and its trajectory lines up with what the Employee Benefit Research Institute (EBRI) found in its own 2011 Retirement Confidence Survey: record-low confidence, full stop.

Retirement Confidence Plummets to Record Lows

2011 marked a low point. EBRI’s numbers show just 13% of workers were very confident they could afford a comfortable retirement, down from 17% the year before and the weakest reading the survey had ever produced. At the other end, 27% said they were not at all confident, up from 22% in 2010. None of this happened in a vacuum; it’s the 2008 financial crisis still working its way through household budgets three years later. Even retirees, people who’d already crossed the finish line, weren’t reassured. Just 24% called themselves very confident about maintaining their lifestyle.

The underlying numbers back up the mood. The Federal Reserve’s 2011 Survey of Consumer Finances found that close to half of Americans had less than $100,000 in net worth, counting home equity and retirement accounts together. For a lot of households, that means retirement savings are still barely off the ground, with nothing to absorb a bad year. The FDIC reported that roughly 27% of U.S. households had no savings account whatsoever in 2011. Add rising healthcare costs and flat wages to that picture, and you get a pretty shaky foundation for anyone trying to plan decades ahead.

Run the numbers on a single example. A 55-year-old with less than $1,000 saved, planning to retire at 67, would need to save around $2,000 a year for 20 years just to reach $40,000. That’s $167 a month. Against average non-mortgage debt of $9,167, and credit card balances climbing, that kind of saving pace isn’t realistic without a deliberate plan and some sacrifice. 29% of workers had less than $1,000 saved and invested in 2011, which tells you most people were still at square one.

Confidence by Age Group: Boomers, Gen X, and Millennials

Anxiety wasn’t distributed evenly across generations. The survey split respondents into three brackets: Boomers (47 to 66), Gen Xers (25 to 46), and Millennials (18 to 24). Boomers worried most about medical costs; 47% said they were “not at all confident” they could cover medical expenses in retirement, versus 31% for the other two groups combined.

Millennials, oddly enough, were the optimists. While only 13% of all workers overall felt very confident, 21% of Millennials did, beating both Gen X and Boomers. Part of that might be generational calibration. Millennials entered the workforce in the middle of a recession, so they may have already lowered their expectations around timelines and savings targets before this survey ever asked them. The EBRI report notes that younger workers tend to treat retirement as something distant, which can dull anxiety in the short term but also delay actual saving.

Boomers leaned harder on Social Security. About 41% called themselves “very confident” in the program’s long-term sustainability, compared to 29% of Gen Xers and 23% of Millennials. That confidence might not hold up. The Social Security Administration projected trust fund reserves running dry by 2033, which could mean benefit cuts hitting people born in the 1950s and 1960s. The SSA’s 2011 Annual Report laid out that same timeline, yet most Americans still don’t fully grasp what it means for their own checks.

Retirement Timing and Savings Behavior

One of the clearest signs of eroding confidence: retirement timelines keep stretching out. 36% of workers now expect to retire after 65, up from just 11% in 1991. Some of that is financial necessity, some of it is just people living longer. The CDC reported average U.S. life expectancy at 78.7 years in 2011, meaning many retirees need to fund 20-plus years without a paycheck.

Savings haven’t kept pace with that math. 29% of workers reported less than $1,000 in savings and investments, up from 24% in 2010. It’s worse at the lower end of the income scale. Experian’s 2011 credit data found 43% of households earning under $30,000 a year had no retirement savings at all. Even at $50,000 to $75,000, the figure was still 34%. That’s not just a low-income problem; it’s a middle-class one too.

Debt makes things harder still. The Consumer Financial Protection Bureau put average non-mortgage debt at $9,167 per American in 2011. Credit cards, student loans, and auto loans crowd out whatever might otherwise go toward retirement. SoFi’s internal 2011 data showed borrowers with a FICO Score below 640 were twice as likely to put off retirement savings altogether. Above a 700 score, that likelihood dropped by half.

Here’s a concrete case. Say you’ve got a 620 credit score and need roughly $8,000 for a medical bill or a home repair. Borrow that at 15% interest and you’ll pay about $1,200 in interest over a year, or $100 a month. If you’re also trying to put $200 a month toward retirement, that debt just ate half your savings capacity. Push your score above 700 and the rate might drop to 8%, cutting interest to $640 a year, a savings of $560. It’s usually worth improving your credit score before taking on new debt if your rate is above 10%. But if your cards are already maxed and there’s no income cushion behind you, credit repair alone won’t fix the underlying problem; it just slows the bleeding.

Who Is Most at Risk?

Income is still the single biggest predictor of retirement confidence. The EBRI report confirms that confidence in personal finances and benefits climbs steadily with household income. Among those earning $100,000 or more, 44% said they felt very confident about retirement. Below $30,000, that figure was just 8%.

Women face extra headwinds. The U.S. Bureau of Labor Statistics (BLS) reported in 2011 that women earned 77 cents for every dollar men earned. Compounded over a career, that gap translates directly into smaller retirement account balances. Women also tend to outlive men, which means stretching fewer dollars over more years. In 2011, the average woman retired at 63.2 but was expected to live to 84.1, nearly 21 years in retirement.

Minority households face a steeper climb still. The Urban Institute’s 2011 report found Black and Hispanic households had median net worths of $7,100 and $3,800 respectively, less than a tenth of what white households held. That gap traces back to historical inequities: lower homeownership rates, higher debt burdens, less generational wealth to draw on. The Urban Institute ties these disparities directly to long-term retirement insecurity, not just short-term hardship.

Healthcare Costs and Retirement Risk

Medical costs top the list of retirement worries, and for good reason. AARP projected the average 2011 retiree would spend close to $200,000 on healthcare over their lifetime. Medicare doesn’t cover most long-term care, so retirees end up leaning on private insurance or paying out of pocket. AARP’s 2011 estimate put annual costs, even with Medicare in place, at around $3,800 for premiums, deductibles, and services Medicare doesn’t touch.

Boomers feel this most acutely. The EBRI survey found 47% of Boomers were not at all confident they could afford medical care in retirement, well above the 31% figure for Gen X and Millennials combined. And that fear has data behind it. A 2011 National Bureau of Economic Research (NBER) study found 28% of retirees hit a major medical expense within five years of retiring. Without long-term care insurance, that kind of bill can undo decades of saving in a single year.

Long-term care coverage remains rare. Just 8% of Americans aged 50 to 65 carried a policy, per the National Association of Insurance Commissioners (NAIC). Meanwhile, Genworth’s 2011 Cost of Care Survey put the average nursing home bill at $94,480 a year. That mismatch, low coverage against high potential cost, leaves millions exposed. If you’re in your early 50s earning $60,000 a year, a $100,000 long-term care policy might run $2,000 to $3,000 annually, or $170 to $250 a month. Wait until 70 and premiums could double. Buying long-term care insurance by age 60 is usually worth it if you can afford it and expect to live into your 80s. But for someone already living on a fixed income with no savings cushion, it’s often the wrong move; it drains money needed for groceries and rent, not a hypothetical nursing home bill decades out. That’s a real limitation of blanket advice on this topic: it doesn’t hold up for households already stretched thin.

Comparison of Confidence and Financial Behavior

Retirement Planning and Financial Tools

The picture isn’t hopeless. Automatic enrollment in 401(k) plans, standard now at companies like Chase and IBM, has pushed participation upward over the years. The U.S. Department of Labor reported that 82% of large employers offered automatic enrollment in 2011, up from 68% in 2007. Most of these plans default new hires into something like a target-date fund, which shifts its risk profile automatically as workers age.

Being enrolled doesn’t mean being on track, though. The EBRI report found that even among workers with 401(k) access, only 58% were saving enough to hit their own retirement goals. Average contribution rates sat at 5.4%, well under the 10 to 15% range most planners recommend. Companies like Google and Microsoft, which match employee contributions, saw participation rates up to 8%, better, but still short of where it needs to be.

Credit scores and debt-to-income ratios matter here too. FICO’s 2011 data showed Americans with a DTI above 40% were 62% less likely to be on track for retirement. SoFi’s borrower data from the same year found people with FICO scores above 700 saved 30% more annually than those below 640. The pattern is consistent: financial health earlier in life shapes retirement outcomes decades later, not the other way around.

Frequently Asked Questions

What percentage of workers were not at all confident about retirement in 2011?

27% of workers said they were not at all confident about having enough money for a comfortable retirement in 2011, up from 22% in 2010, according to the Employee Benefit Research Institute (EBRI).

How much money do most Americans have saved for retirement?

In 2011, 29% of workers had less than $1,000 in savings and investments, and the median retirement account balance for households was just $46,000, according to EBRI’s 2011 survey.

Why are so many people delaying retirement?

Because of financial strain, 36% of workers expected to retire after age 65 in 2011, up from 11% in 1991, due to inadequate savings and rising healthcare costs.

How does income level affect retirement confidence?

Higher-income workers are more confident. Among those earning $100,000+, 44% were very confident in retirement, compared to just 8% for those earning under $30,000.

What is the average life expectancy at retirement?

Retirees in 2011 were expected to live an average of 20 years in retirement, with women outliving men by nearly 4 years, according to CDC data.

Are healthcare costs a major concern for retirees?

Yes. The average retiree was projected to spend $200,000 on healthcare over their lifetime. In 2011, 47% of Boomers said they were not at all confident about affording medical care.

How many people have long-term care insurance?

Only 8% of Americans aged 50 to 65 had long-term care insurance in 2011, according to the National Association of Insurance Commissioners (NAIC).

What role does credit score play in retirement planning?

Those with a FICO Score above 700 were 50% more likely to save consistently for retirement, per SoFi’s 2011 data, compared to those with scores below 640.

How does automatic 401(k) enrollment affect savings?

Automatic enrollment increased 401(k) participation to 82% among large employers in 2011, according to the U.S. Department of Labor (DOL).

What is the average cost of a nursing home in 2011?

The average yearly cost of a nursing home in 2011 was $94,480, according to Genworth’s Cost of Care Survey.