Good news–we’re feeling much more confident about our retirement prospects.

 Bad news–  workers are not doing any better –in fact worse– at being financially prepared for retirement. 

 More than half of workers surveyed reported savings and investments of less than $25,000, according to the new Retirement Confidence Survey from the Employee Benefit Research Institute.

And, I’ll bet a lot of them say — not to worry – I still have time.  Or, I’ll just work longer.

But then the unexpected happens.

So, we see a big gap between expectation and reality about the age at which we’ll retire. 

 9% of workers say they plan to retire before age 60, yet 31% of retirees report they retired that early.  In 2010, EBRI found that 41% left the work force earlier than planned.  Why? health problems or disability(54%), changes at their company (26%) such as downsizing or closure, or taking care of a spouse or other family member (19%).  Just 5% cited a positive reason for leaving early.

What are workers worried about in retirement:

  * 51% are worried about medical expenses,

  * 61% are worried about long-term care expenses and

  * 35% are not confident they are doing a good job of preparing for retirement.

If you are confident and prepared -give yourself a pat on the back and keep at it. It hasn’t been easy, especially this past 18 months.

If you aren’t prepared, remember that you don’t always get to pick the time when you stop working. sometime it picks you.  While you are still working is the right time to create a long-term care plan and decide if long-term care insurance is the right way to help shoulder some of your potential long-term care costs.  Take the time now to understand how Medicare works and what it covers and does not cover, and what it costs or what your retiree health benefits will cost. 

It’s important information in figuring out your expenses in retirement.  Less than half of workers say they have tried to calculate how much money they will need in retirement. 

So if you’re feeling better about the prospects of retirement, take the next step and start planning today for your income, medical and long-term care needs in retirement.