MONEY retirement planning

1 out of 3 of Workers Expect Their Living Standard to Fall in Retirement

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But you don't have to be among the disappointed. Here's how to get retirement saving right.

One third of workers expect their standard of living to decline in retirement—and the closer you are to retiring, the more likely you are to feel that way, new research shows.

That’s not too surprising, given the relatively modest amounts savers have stashed away. The median household savings for workers of all ages is just $63,000, according to the 16th Annual Transamerica Retirement Survey of Workers. The savings breakdown by age looks like this: for workers in their 20s, a median $16,000; 30s, $45,000; 40s, $63,000; 50s, $117,000; and 60s, $172,000.

Those on the cusp of retirement, workers ages 50 and older, have the most reason to feel dour—after all, they took the biggest hits to their account balances and have less time to make up for it. If you managed to hang on, you probably at least recovered your losses. But many had to sell, or were scared into doing so, while asset prices were depressed. And even you did not sell, you gave up half a decade of growth at a critical moment.

Despite holding student loans and having the least amount of faith in Social Security, workers under 40 are most optimistic, according to the survey. That’s probably because they began saving early. Among those in their 20s, 67% have begun saving—at a median age of 22. Among those in their 30s, 76% have begun saving at a median age of 25. Nearly a third are saving more than 10% of their income.

Workers in their 50s and 60s are also saving aggressively, the survey found. But they started later—at age 35. And with such a short period before retiring they are also more likely to say they will rely on Social Security and expect to work past age 65 or never stop working.

Interestingly, the younger you are the more likely you are to believe that you will need to support a family member (other than your spouse) in retirement. You are also more likely to believe you will require such financial support yourself. Some 40% of workers in their 20s expect to provide such support.

By contrast, that expectation was shared by only 34% of those in their 30s, 21% of those in their 40s, 16% of those in their 50s and 14% of those in their 60s. A similar pattern exists for those who expect to need support themselves—19% of workers in their 20s, but only 5% of those in their 60s.

Workers are also looking beyond the traditional three-legged stool of retirement security, which was based on the combination of Social Security, pension and personal savings. Those three resources are still ranked as the most important sources of retirement income, but workers now are also counting on continued employment (37%), home equity (13%), and an inheritance (11%), the survey found.

Asked how much they need save to retire comfortably, the median response was $1 million—a goal that’s out of reach for most, given current savings levels. Strikingly, though, more than half said that $1 million figure was just a guess. About a third said they’d need $2 million. Just one in 10 said they used a retirement calculator to come up with their number.

As those answers suggest, most workers (67%) say they don’t know as much as they should about investing. Indeed, only 26% have a basic understanding and 30% have no understanding of asset allocation principles—the right mix of stocks and bonds that will give you diversification across countries and industry sectors. Meanwhile, the youngest workers are the most likely to invest in conservative securities like bonds and money market accounts, even though they have the most time to ride out the bumps of the stock market and capture better long-term gains.

Across age groups, the most frequently cited retirement aspiration by a wide margin is travel, followed by spending time with family and pursuing hobbies. Among older workers, one in 10 say they love their work so much that their dream is to be able stay with it even in their retirement years. That’s twice the rate of younger workers who feel that way. Among workers of all ages, the most frequently cited fear is outliving savings, followed closely by declining health that requires expensive long-term care.

To boost your chances of retiring comfortably and achieving your goals, Transamerica suggests:

  • Start saving as early as possible and save consistently over time. Avoid taking loans and early withdrawals from retirement accounts.
  • In choosing a job, consider retirement benefits as part of total compensation.
  • Enroll in your employer-sponsored retirement plan. Take full advantage of the match and defer as much as possible.
  • Calculate retirement savings needs. Factor in living expenses, healthcare, government benefits and long-term care.
  • Make catch-up contributions to your 401(k) or IRA if you are past 50

Read next: Answer These 10 Questions to See If You’re on Track for Retirement

MONEY retirement planning

Answer These 10 Questions to See If You’re on Track to Retirement

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More Americans are confident about retirement—maybe too confident. Here's how to give your expectations a timely reality check.

The good news: The Employee Benefit Research Institute’s 2015 Retirement Confidence Survey says workers and retirees are more confident about affording retirement. The bad news: The survey also says there’s little sign they’re doing enough to achieve that goal. To see whether you’re taking the necessary steps for a secure retirement, answer the 10 questions below.

1. Have you set a savings target? No, I don’t mean a long-term goal like have a $1 million nest egg by age 65. I mean a short-term target like saving a specific dollar amount or percentage of your salary each year. You’ll be more likely to save if you have such a goal and you’ll have a better sense of whether you’re making progress toward a secure retirement. Saving 15% of salary—the figure cited in a recent Boston College Center for Retirement Research Study—is a good target. If you can’t manage that, start at 10% and increase your savings level by one percentage point a year, or go to the Will You Have Enough To Retire tool to see how you’ll fare with different rates.

2. Are you making the most of tax-advantaged savings plans? At the very least, you should be contributing enough to take full advantage of any matching funds your 401(k) or other workplace plan offers. If you’re maxing out your plan at work and have still more money you can save, you may also be able to save in other tax-advantaged plans, like a traditional IRA or Roth IRA. (Morningstar’s IRA calculator can tell you whether you’re eligible and, if so, how much you can contribute.) Able to sock away even more? Consider tax-efficient options like broad index funds, ETFs and tax-managed funds within taxable accounts.

3. Have you gauged your risk tolerance? You can’t set an effective retirement investing strategy unless you’ve done a gut check—that is, assessed your true risk tolerance. Otherwise, you run the risk of doing what what many investors do—investing too aggressively when the market’s doing well (and selling in a panic when it drops) and too conservatively after stock prices have plummeted (and missing the big gains when the market inevitably rebounds). You can get a good sense of your true appetite for risk within a few minutes by completing this Risk Tolerance Questionnaire-Asset Allocation tool.

4. Do you have the right stocks-bonds mix? Most investors focus their attention on picking specific investments—the top-performing fund or ETF, a high-flying stock, etc. Big mistake. The real driver of long-term investing success is your asset allocation, or how you divvy up your savings between stocks and bonds. Generally, the younger you are and the more risk you’re willing to handle, the more of your savings you want to devote to stocks. The older you are and the less willing you are to see your savings suffer setbacks during market downturns, the more of your savings you want to stash in bonds. The risk tolerance questionnaire mentioned above will suggest a stocks-bonds mix based on your appetite for risk and time horizon (how long you plan to keep your money invested). You can also get an idea of how you should be allocating your portfolio between stocks and bonds by checking out the Vanguard Target Retirement Fund for someone your age.

5. Do you have the right investments? You can easily get the impression you’re some sort of slacker if you’re not loading up your retirement portfolio with all manner of funds, ETFs and other investments that cover every obscure corner of the financial markets. Nonsense. Diversification is important, but you can go too far. You can “di-worse-ify” and end up with an expensive, unwieldy and unworkable smorgasbord of investments. A better strategy: focus on plain-vanilla index funds and ETFs that give you broad exposure to stocks and bonds at a low cost. That approach always makes sense, but it’s especially important to diversify broadly and hold costs down given the projections for lower-than-normal investment returns in the years ahead.

6. Have you assessed where you stand? Once you’ve answered the previous questions, it’s important that you establish a baseline—that is, see whether you’ll be on track toward a secure retirement if you continue along the saving and investing path you’ve set. Fortunately, it’s relatively easy to do this sort of evaluation. Just go to a retirement income calculator that uses Monte Carlo analysis to do its projections, enter such information as your age, salary, savings rate, how much you already have tucked away in retirement accounts, your stocks-bonds mix and the percentage of pre-retirement income you’ll need after you retire retirement (70% to 80% is a good starting estimate) and the calculator will estimate the probability that you’ll be able to retire given how much you’re saving and how you’re investing. If you’re already retired, the calculator will give you the probability that Social Security, your savings and any other resources will be able to generate the retirement income you’ll need. Ideally, you want a probability of 80% or higher. But if it comes in lower, you can make adjustments such as saving more, spending less, retiring later, etc. to improve your chances. And, in fact, you should go through this assessment every year or so just to see if you do need to tweak your planning.

7. Have you done any “lifestyle planning”? Finances are important, but planning for retirement isn’t just about the bucks. You also want to take time to think seriously about how you’ll actually live in retirement. Among the questions: Will you stay in your current home, downsize or perhaps even relocate to an area with lower living costs? Do you have enough activities—hobbies, volunteering, perhaps a part-time job—to keep you busy and engaged once you no longer have the nine-to-five routine to provide a framework for most days? Do you have plenty of friends, relatives and former co-workers you can turn to for companionship and support. Research shows that people who have a solid social network tend to be happier in retirement (the same, by the way, is true for retirees who have more frequent sex). Obviously, this is an area where your personal preferences are paramount. But seminars for pre-retirees like the Paths To Creative Retirement workshops at the University of North Carolina at Asheville and tools like Ready-2-Retire can help you better focus on lifestyle issues so can ultimately integrate them into your financial planning.

8. Have you checked out your Social Security options? Although many retirees may not think of it that way, the inflation-adjusted lifetime payments Social Security provides are one of their biggest financial assets, if not the biggest. Which is why it’s crucial that a good five to 10 years before you retire, you seriously consider when to claim Social Security and, if you’re married, how best to coordinate benefits with your spouse. Advance planning can make a big difference. For each year you delay taking benefits between age 62 and 70, you can boost your monthly payment by roughly 7% to 8%. And by taking advantage of different claiming strategies, married couples may be able to increase their lifetime benefit by several hundred thousand dollars. You’ll find more tips on how to get the most out of Social Security in Boston University economist and Social Security expert Larry Kotlikoff’s new Social Security Q&A column on RealDealRetirement.com.

9. Do you have a Plan B? Sometimes even the best planning can go awry. Indeed, two-thirds of Americans said their retirement planning has been disrupted by such things as major health bills, spates of unemployment, business setbacks or divorce, according to a a recent TD Ameritrade survey. Which is why it’s crucial that you consider what might go wrong ahead of time, and come up with ways to respond so you can mitigate the damage and recover from setbacks more quickly. Along the same lines, it’s also a good idea to periodically crash-test your retirement plan. Knowing how your nest egg might fare during a severe market downturn and what that mean for your retirement prospects can help prevent you from freaking out during periods of financial stress and better formulate a way to get back on track.

10. Do You Need Help? If you’re comfortable flying solo with your retirement planning, that’s great. But if you think you could do with some assistance—whether on an ongoing basis or with a specific issue—then it makes sense to seek guidance. The key, though, is finding an adviser who’s competent, honest and willing to provide that advice at a reasonable price. The Department of Labor recently released a proposal designed to better protect investors from advisers’ conflicts of interest. We’ll have to see how that works out. In the meantime, though, you can increase your chances of getting good affordable advice by following these four tips and asking these five questions.

Walter Updegrave is the editor of RealDealRetirement.com. If you have a question on retirement or investing that you would like Walter to answer online, send it to him at walter@realdealretirement.com.

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MONEY 401(k)s

401(k) Savings Hit a Record High. How Do You Stack Up?

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Workers are socking away more for retirement in their 401(k)s, a Fidelity report finds. But it may not be enough.

Some good news on the retirement front: The average 401(k) account balance reached a record high and workers are stashing away more in their plans, according to Fidelity, the largest retirement savings plan provider.

The average 401(k) held $91,800 in the first quarter of this year, up 3.6% from a year ago. Meanwhile, a record 23% of employees in Fidelity plans hiked their 401(k) contributions in the past year. The average savings rate, including both employer and employee contributions, climbed to 12.5%.

For employees in a 401(k) plan for 10 or more years, the average balance was a hefty $251,600, up 12% year over year. For those with both a 401(k) and IRA at Fidelity, the average combined balance rose 2.2% to $267,200.

Impressive, but it may not be enough. The Fidelity report doesn’t spell it out, but most of these gains are owed to the bull market, which will eventually fade. Meanwhile, the typical employee is still far behind in retirement saving.

That may seem counter-intuitive, given those lofty balances, but the averages are skewed upwards by high-income savers. The typical working household nearing retirement with a 401(k) and an IRA has a median $111,000 combined, which would yield less than $400 a month in retirement, according to a recent report by the Boston College’s Center for Retirement Research.

For households ages 55 to 64 earning $40,000 to $60,000 a year, the median balance in 401(k) and IRA accounts is just $53,000. For the same age group earning $138,000 or more, the median account is $452,000, according to CRR.

Financial planners recommend saving 10% to 15% of your income annually, starting in your 20s. The goal: amass 10 to 12 times your final annual earnings in order to have enough to maintain your standard of living in retirement. So if you make $60,000 a year, you should accumulate $600,000 to $720,000 by the time you retire.

That’s a tall order, and you could certainly live on less—many people do. Still, to have a shot at affording a decent retirement, you need to save consistently over the long term. And to do that, you need a plan, which gives a huge advantage to workers who have a 401(k).

According to the Employee Benefit Research Institute’s latest Retirement Confidence survey, those with 401(k) plans are much more optimistic about their retirement prospects: 71% of those with a plan are very or somewhat confident they will live comfortably in retirement, vs. just 33% of those who are not, EBRI found. Similarly, the CRR report shows that 68% of older households with the highest median retirement account balances had a 401(k) vs. just 22% for the group with the least savings.

Employers could be doing more to encourage that kind of savings behavior. Just one-third of 401(k) plans automatically enroll new workers but only 13% of companies automatically increase contribution rates each year, according to Fidelity.

To see if you’re on track, run your numbers on an online retirement savings calculator, such as those offered by T. Rowe Price or Vanguard. Get MONEY’s advice on how to make the most of your 401(k) at every stage of your life here. If you don’t have a 401(k), here’s what you need to know about IRAs.

Get more tips on investing for retirement:
What Is the Right Mix of Stocks and Bonds for Me?
How Many Funds Do I Need?
How Often Should I Check on My Retirement Investments?

MONEY College

How Parents Feel About Affording College: Pick a Synonym for Scared

Survey finds most parents fail to put their college savings in investments that can keep up with tuition.

How do parents feel about saving for college? How many different words are there for anxious?

In a survey of 1,988 parents released today, the majority of parents described saving for college with words like “worried,” “frustrated,” and “overwhelmed.”

In the 2015 “How America Saves for College” report from Upromise by Sallie Mae, parents reported saving less for everything—including college—in 2014 than they did in 2013. The reason cited by most (61%): they just don’t have enough money left over at the end of the month.

The average annual amount put aside for college in 2014 fell to $2,566 from $3,016 in 2013. The average accumulated college savings also declined, to $10,040 from $13,408.

That said, the survey found that parents are still putting a high priority on their children’s education, continuing to earmark around 10% of their savings for college. But along with saving fewer actual dollars, many are putting what money they have in low-paying investments that will likely lag tuition inflation. Nearly a quarter said they were saving in their checking accounts, and 15% said they were socking away college money in CDs, both of which currently pay almost no interest.

Fewer than 30% of parents said they used tax-advantaged 529 college savings plans; worse still, fully 52% of those surveyed said they’d never heard of a 529 plan and thus didn’t know that they could put money aside for college and let it grow tax-free, and might even get get a state tax break on their contributions to their kids’ accounts.

Not surprisingly, parents with low and moderate incomes reported being the most worried. But even parents earning more than $100,000 a year, who were the biggest savers, were still plenty fretful. Only 30% of the wealthy described themselves as “confident” in their ability to pay for college.

The wealthy were the most likely to take advantage of the tax benefits provided by 529s: Almost half of families earning more than $100,000 reported using a 529 plan, compared with 20% of those earning between $35,000 and $100,000 and 17% of those earning less than $35,000. (For help feeling a little less anxious, here’s advice on choosing the best 529 plan for you.)

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MONEY Generation X

Why Gen Xers May Be More Prepared for Retirement Than Boomers

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In the face of future hardship, some Gen Xers are actually improving their savings habits.

It is generally acknowledged that Gen Xers are hugely disadvantaged when it comes to retirement security. Gen Xers entered the workforce just as companies began to abandon traditional pension plans for 401(k)s, which shift the burden of saving and investing from the employer to the employee. And while baby boomers still stand to collect their full Social Security benefits, Gen Xers are retiring just as the program’s trust fund is forecast to run dry—around 2033, according to the latest report. That could cut their payout by about a third.

And yet Gen Xers have one big advantage over boomers: time. Not only do they have more working years left to save in those 401(k)s, but their investments have longer to grow tax-deferred. According to projections from the Employee Benefit Research Institute, both Gen Xers and Baby Boomers face significant deficits in the amount of money that they need to retire comfortably, but the more years workers keep contributing to a 401(k), the more those shortfalls decrease.

For example, a Gen Xer assumed to have stopped saving in a 401(k) faces a current shortfall of $78,297, while one with at least 20 years of continued contributions could find the average shortfall at retirement reduced to only $16,782. (EBRI’s retirement savings shortfalls are discounted back to a present value of retirement deficits at age 65.)

Other research suggests Gen Xers are fully aware of the challenges they face and are taking steps to overcome them. In a recent survey by PNC Financial Services, 65% of Gen X respondents said that they believed that they were solely responsible for their own retirement with no expectation of Social Security, employer pension or inheritance, while only 45% of boomers believed that they were solely responsible.

The PNC survey polled more than more than 1000 “successful savers”—those ages 35 to 44 had a total of $50,000 in financial assets, or at least $100,000 if age 45 or older. Compared to boomers, Gen Xers have more aggressive portfolios, are more heavily invested in stocks, and worry more that their savings may not hold out for as long as they live.

Even the financial crisis seems to have affected the two generations differently. When asked the ways in which their thoughts about retirement planning have changed over the last six years, 51% of Gen Xers said that they planned to save more to reach their goals, compared to only 37% of Boomers. And in what’s the most encouraging finding I’ve yet seen about Gen X, 28% said that they have increased the amount that they typically save and invest since the recession, as opposed to 22% of baby boomers.

In other words, the financial crisis seemed to have served as something as a wake-up call for Gen Xers. In the face of future hardship, some are actually adjusting their behaviors instead of burying their heads in the sand. Despite the odds stacked against them, Gen Xers just might get pushed into habits of thrift and rise to meet the financial challenges ahead. The good news: time is on their side.

Konigsberg is the author of The Truth About Grief, a contributor to the anthology Money Changes Everything, and a director at Arden Asset Management. The views expressed are solely her own.

Read next: Why Wary Investors May Keep the Bull Market Running

MONEY retirement planning

Here’s Your 3-Step 15-Minute Retirement Plan

With a plan, you're likely to save four times as much. And it doesn't have to be complex to be effective.

Want to get serious about preparing for retirement? Get a plan. A 2014 Wells Fargo survey found that middle-class Americans who have a written retirement plan saved four times as much as those without one. Fortunately, a plan doesn’t have to be complex to be effective. In fact, putting together a perfectly acceptable one can be as easy as 1-2-3.

Step #1: Pick a savings target. Don’t get hung up on trying to identify the exact amount need to save. When you’re saving for a retirement that’s many years off in the future, there are too many unknowables to be that precise. To get things rolling, I suggest you shoot for 15% of pay, which is the figure cited for the typical household by the Boston College Center For Retirement Research in a recent paper. If that amount seems too daunting, then start at 10% and boost that figure by one percentage point each year until you hit 15% of salary.

The important thing, though, is to push yourself a bit when it comes to saving, as there may be some years when unexpected expenses or a job layoff prevent you from reaching your savings goal. Indeed, when researchers for TIAA-Cref’s Ready-to-Retire survey asked retirees last year what they wished they had done differently to prepare for retirement, almost half said they wish they had saved more of their paycheck for retirement. They also expressed regret that they hadn’t started saving sooner, So once you pick your target saving rate, start stashing your dough away immediately.

One more note about your savings rate: If you contribute to a 401(k) or other workplace plan and your employer matches a portion of what you save, those employer matching funds should count toward your savings target. So if your company contributes 50% of the amount you save up to 6% of salary for a 3% match—a typical formula—you would have to save just 12% of salary to reach a 15%.

Step #2: Settle on your investing strategy. This step trips up people for several reasons. Some get flustered because they know little or nothing about investing. Others think they’ve got to sift through dozens of investments to find the “best” of the lot. Still others feel that they aren’t doing an adequate job investing for retirement unless they’ve stuffed their portfolio with every possible investment representing every conceivable asset class known to man.

I have one word for people worried about such issues: chill. Investing doesn’t have to be complicated. In fact, whether you’re a neophyte or a grizzled veteran of the financial markets, simpler is better when it comes to building a retirement portfolio.

Here’s all you have to do. First, restrict yourself to low-cost index funds. You can build a diversified portfolio with just two funds: a total U.S. stock market index fund and a total U.S. bond market index fund. If you want to get fancy, you can throw in a total international stock index fund. (If you prefer, you can use the ETF versions of such funds instead.) You can find these investments at such firms as Vanguard, Fidelity and Schwab.

Second, settle on a stocks-bonds mix that’s appropriate given your tolerance for risk. You can get a recommended mix by going to the Investor Questionnaire-Allocation Tool in RealDealRetirement’s Toolbox. Once you’ve settled on a stocks-bonds mix, leave it alone, except perhaps to rebalance every year or so. Or, if you can’t see yourself building even a simple portfolio with a few funds, just invest in a target-date retirement fund. This type of fund—available from the same three firms mentioned above—gives you a fully diversified portfolio that becomes more conservative as you approach and enter retirement.

Step 3: Do an initial assessment. Now it’s time to see where you stand. That may seem premature if you’re really just getting started. But the idea is you want to get a sense of what kind of retirement you’ll end up with if you follow the course you’ve set in steps one and two. Think of it as establishing a baseline so you can gauge whether or not you’re making progress when you re-do this evaluation every 12 months or so.

Doing this assessment is pretty simple. Go to a retirement income calculator that uses Monte Carlo analysis to make projections, plug in such information as your age, salary, savings rate, the amount, if any, you already have stashed in retirement accounts, the stocks-bonds mix you arrived at in step 2, the age at which you intend to retire, the percentage of pre-retirement income you’ll require in retirement (80% or so is a decent estimate) and how many years you expect to live in retirement (I suggest to age 95 to be on the conservative side)…and voila! The calculator will churn a few seconds and forecast the probability that you’ll be able to retire on schedule given how much you’re saving and how you’re investing.

Generally, you’d like to see a probability of 80% or higher, although you shouldn’t freak out if your chances are much lower. The point of this exercise is to see where you stand now so you can adjust your planning to tilt the odds of success more in your favor, if that’s necessary. The most effective adjustment is saving more, but there are other possibilities, such as staying on the job longer, working part-time in retirement, maximizing Social Security benefits and relocating to a lower cost area once you retire.

Do you have to write all this down to get the benefit of this plan? I wouldn’t say it’s absolutely necessary. But I think it’s a good idea to jot down your target savings rate and the asset mix you’ve decided on if for no other reason than doing so can make you feel more committed to following through. You should also save a digital or hard copy each time you do an evaluation so you can see whether you’re making progress or backsliding.

You’ll want to refine and tweak this plan as you go along, but for now the most important thing is to get started. Because the sooner you set a savings rate and start funding your retirement accounts, the better your chances of having a secure and enjoyable retirement down the road.

Walter Updegrave is the editor of RealDealRetirement.com. If you have a question on retirement or investing that you would like Walter to answer online, send it to him at walter@realdealretirement.com.

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MONEY retirement planning

One Thing Successful Retirement Savers Have in Common

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With the markets rebounding, workers with 401(k)s feel more confident about retirement. Everyone else, not so much.

Retirement confidence in the U.S. stands at its highest point since the Great Recession, new research shows. But the recent gains have been almost entirely confined to those with a traditional pension or tax-advantaged retirement account, such as a 401(k) or IRA.

Some 22% of workers are “very” confident they will be able to live comfortably in retirement, according to the Employee Benefit Research Institute 2015 Retirement Confidence Survey, an annual benchmark report. That’s up from 18% last year and 13% in 2013. But it remains shy of the 27% reading hit in 2007, just before the meltdown. Adding those who are “somewhat” confident, the share jumps to 58%—again, well below the 2007 reading (70%).

The heightened sense of security comes as the job market has inched back to life and home values are on the rise. Perhaps more importantly: stocks have been on a tear, rising by double digits five of the last six years and tripling from their recession lows.

Those with an employer-sponsored retirement plan are most likely to have avoided selling stocks while they were depressed and to have stuck to a savings regimen. With the market surge, it should come as no surprise that this group has regained the most confidence—71% of those with a plan are very or somewhat confident, vs. just 33% of those who are not, EBRI found. (That finding echoes earlier surveys highlighting retirement inequality.)

Among those who aren’t saving, daily living costs are the most commonly cited reason (50%). While worries over debt are down, it remains a key variable. Only 6% of those with a major debt problem are confident about retirement while 56% are not confident at all. But despite those savings barriers, most workers say they could save a bit more for retirement—69% say they could put away $25 a week more than they’re doing now.

At the root of growing retirement confidence is a perceived ability to afford potentially frightening old-age expenses, including long-term care (14% are very confident, vs. 9% in 2011) and other medical expenses (18%, vs. 12% in 2011). The market rebound probably explains most of that, though flexible and affordable new long-term care options and wider availability of health insurance through Obamacare may play a role.

At the same time, many workers have adjusted to the likelihood they will work longer, which means they can save longer and get more from Social Security by delaying benefits. Some 16% of workers say the date they intend to retire has changed in the past year, and 81% of those say the date is later than previously planned. In all, 64% of workers say they are behind schedule as it relates to saving for retirement, drawing a clear picture of our saving crisis no matter how many are feeling better about their prospects.

Those adjustments are simply realistic. Some 57% of workers say their total savings and investments are less than $25,000. Only one out of five workers with plans have more than $250,000 saved for retirement, and only 1% of those without plans. Clearly, additional working and saving is necessary to avoid running out of money.

Still, many workers have no idea how much they even need to be putting away. When asked what percentage of income they need to save, 27% said they didn’t know. And almost half of workers age 45 and older have not tried to figure out how much money they need to meet their retirement goals, though those numbers are edging up. As previous EBRI studies have found, workers who make these calculations tend to set higher goals, and they are more confident about reaching them.

To build your own savings plan, start by using an online retirement savings calculator, such as those offered by T. Rowe Price or Vanguard. And you can check out Money’s retirement advice here and here.

Read next: Why Roth IRA Tax Tricks Won’t Rescue Your Retirement

MONEY Investing

Why Wary Investors May Keep the Bull Market Running

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Ernst Haas—Getty Images

Retirement investors are optimistic but have not forgotten the meltdown. That's good news.

Six years into a bull market, individual investors around the world are feeling confident. Four in five say stocks will do even better this year than they did last year, new research shows. In the U.S., that means a 13.5% return in 2015. The bar is set at 8% in places like Spain, Japan and Singapore.

Ordinarily, such bullishness following years of heady gains might signal the kind of speculative environment that often precedes a market bust. Stocks in the U.S. have risen by double digits five of six years since the meltdown in 2008. They are up 3%, on average, this year.

But most individuals in the market seem to be on the lookout for dangerous levels of froth. The share that say they are struggling between pursuing returns and protecting capital jumped to 73% in this year’s Natixis Global Asset Management survey. That compares to 67% in 2013. Meanwhile, the share of individuals that said they would choose safety over performance also jumped, to 84% this year from 78% in 2014.

This heightened caution makes sense deep into a bull market and may help prolong the run. Other surveys have shown that many investors are hunkered down in cash. That much money on the sidelines could well fuel future gains, assuming these savers plow more of that cash into stocks.

Still, there is a seat-of-the-pants quality to investors’ behavior, rather than firm conviction. In the survey, 57% said they have no financial goals, 67% have no financial plan, and 77% rely on gut instincts to make investing decisions. This lack of direction persists even though most cite retirement as their chief financial concern. Other top worries include the cost of long-term care, out-of-pocket medical expenses, and inflation.

These are all thorny issues. But investing for retirement does not have to be a difficult chore. Saving is the hardest part. If you have no plan, getting one can be a simple as choosing a likely retirement year and dumping your savings into a target-date mutual fund with that year in the name. A professional will manage your risk and diversification, and slowly move you into safer fixed-income products as you near retirement.

If you are modestly more hands-on, you can get diversification and low costs through a single global stock index fund like iShares MSCI All Country or Vanguard Total World, both of which are exchange-traded funds (ETFs). You can also choose a handful of stock and bond index funds if you prefer a bit more involvement. (You can find good choices on our Money 50 list of recommended funds and ETFs.) Such strategies will keep you focused on the long run, which for retirement savers never goes out of fashion.

Read next: Why a Strong Dollar Hurts Investors And What They Should Do About It

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