Workers closest to retirement age are planning to decrease their 401(k) contributions next year, a survey by Mercer found.
While all workers said they expected to save less for retirement next year, the biggest drop was among those 50 and older. Mercer's 2013 Workplace Survey found that those workers planned to contribute an average of $6,708 next year compared to $8,242 this year.
Younger workers also said they planned to contribute less in 2014, although the amount was closer to this year's figure ($7,402 vs. $7,445).
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Mercer said the dialing back of retirement savings contributions comes even as 77 percent of workers said the economy was improving at a weak or robust pace, up four percentage points from last year, and as the number of companies matching 401(k) contributions reached the highest level in five years (87 percent).
"What we see in the attitudes of retirement plan participants is that they are not feeling the rewards of an improving economy in their own personal situation and therefore seem hesitant or feel unable to give up access to immediate cash in order to save for the future," said Dave Tolve, defined contribution business leader for Mercer's administration business, in a statement.
Even though workers said they expected to make the lower contributions, the survey, which included data from 1,506 U.S. retirement plan participants who also receive health benefits, found that among all respondents saving enough for retirement was the biggest concern at 20 percent. Among those 50 to 64, retirement health care costs were the biggest concern at 23 percent. Just 12 percent of all participants cited that as their biggest concern.
Mercer noted that just six years ago health care costs were barely on worker's radar. Now it said those costs create as much as anxiety as does having enough retirement savings. It said it was unclear how pre-retirees were planning to save more for their health care needs in retirement.
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