The study shows that increasing numbers of workers are not at all confident about their ability to pay for certain aspects of retirement:

• Long-term care expenses (39 percent, up from 34 percent in 2012)
• Medical expenses (29 percent, up from 24 percent in 2012)
• Basic expenses (16 percent, up from 12 percent in 2011)

But the decline in confidence may not actually be all bad. It may be an indication workers are getting a more realistic view of the true costs of retirement and just how much they need to save. 

When asked how much of their household income they should be putting away to have enough for retirement, 70 percent of workers said they need to save 10 percent or more each year. Four in 10 put the target at 20 percent or more.

While those savings levels may be realistic for many workers, the study found less than half of workers have actually done a calculation to find out for sure what they need to save, and many just guess. Still, just believing the savings goals are that high may be overwhelming workers to the point of inertia.

The good: Simple steps can help turn things around

Fortunately, the study found that some relatively simple actions can boost retirement confidence and preparedness.   

Workers who do one or more of these things: calculate retirement savings needs, save in an employer-sponsored plan, get advice from a financial professional, are 20-40 percent more confident about their retirement outlook. And for good reason: they are more prepared.

In our latest Principal Financial Well-Being Index, three-quarters of workers who use a financial professional are taking action to plan for retirement security, compared to only about half of workers who do not use a financial professional.

The opportunity: Financial professionals are ideally positioned to help

The EBRI data gives you a great reason to reach out to clients. Whether you work one-on-one with investors or you advise on retirement plans, you are in an ideal position to encourage the kind of actions that build retirement confidence and security.

Be an advocate for retirement plan design changes that can put inertia to work for employees; getting more into the plan and at higher savings levels. In order to replace 85 percent of their income at retirement, most people should save 11-15 percent (including employer contributions) during their career. Automatic enrollment at 6 percent default rates, automatic annual increases and well-structured employer matches can help can help them get there.

Even those not currently participating in a retirement plan tend to support automatic enrollment. The EBRI study shows that 88 percent of those currently not offered a plan would continue to contribute if they were automatically enrolled at the standard 3 percent default rate. And even if the automatic default rate were doubled to 6 percent, 83 percent of respondents would continue to contribute at some level. Sixty percent would continue at 6 percent or higher.

By promoting plan design changes and making sure participants have access to online calculators, financial professionals can help plan sponsors and participants get the most out of retirement plans. That's good for participants and good for the employer. But it is also good for financial professionals who are looking for ways to demonstrate their value and build and deepen client relationships.