Americans seem to be overconfident of their post-retirement future, shows the annual retirement confidence survey of the nonpartisan Employee Benefit Research Institute. Even though 65 percent of respondents said they were "very" or "somewhat confident" that their money supply after retirement will be sufficient, 20 percent of the respondents who said they were "very confident", are not doing any saving for the future.

The level of savings of those who do put aside some money also leaves much to be desired. Over half of the respondents reported that their savings were under $25,000. They point to high daily expenses, child-related costs and medical expenses as a deterrent to saving more. Analysts, on their part, point to the unrealistically low expectations of future retirees about their future income.

"If your target is unrealistically low, then you’ll likely be overconfident," said Dallas Salisbury, the institute’s president and chief executive officer. "Only 40 percent said they had done a full calculation of what they need in retirement."

Companies’ management is cutting down on expensive pension plans, and replacing them with 401(k) or other kinds of participation plans. This shifts the burden of planning one’s retirement funds to the workers.

"They’re overwhelmed and afraid," said Nancy Coutu, president of Money Managers Advisory in Oak Brook, Ill. "People feel very incompetent and unprepared. I see more people younger than ever, if they are contributing (to a 401(k) plan), they are putting it into a money-market account."