March 12, 2008

A third of Americans 50 and over are not confident they will have enough money to retire, and more than two-thirds expect to keep working well into old age, according to a survey published Wednesday.

The report, commissioned by retirement services firm SecurePath by Transamerica, suggests the surge in companies offering defined-contribution 401(k) plans has not displaced Social Security as the ultimate safety net for retirees. Sixty-one percent said the program would provide them with their main source of income in retirement.

"A huge percentage of people say they rely on government because it's the one thing they know is dependable," said Will Prest, chief marketing officer at Transamerica Retirement Management in St. Paul, Minnesota.

Encouragingly, 65 percent of respondents said they feel in control of their life in retirement, and seven in 10 said they were well-equipped to handle the uncertainties associated with big life transitions like leaving the workforce.

Yet this confidence comes at a cost.

"Seven in 10 workers aged 50 and older have already faced a period of financial difficulty that shook their confidence and created stress," the study found.

The survey also uncovered a general aversion to risk among the broader population, although respondents' appetite for taking chances varied depending on their circumstances and personalities.

"Many more workers 50-plus say they understand savings vehicles for their money better than other investment options, and are not as comfortable with putting their retirement funds in the vehicles they do not understand as well," the survey said.

Just under half said they were not very willing to put money into investments with risk associated with them.

"The average American isn't looking for a life of leisure or luxury," said Prest. "They're just looking to live life on their own terms and lower their stress level, but still participate."

The report's findings were based on 2,015 online interviews among working adults aged 50 or older, and was conducted by GfK Roper Public Affairs & Media.