A study shows that lots of Americans– especially those with lower incomes– aren’t saving as much for emergencies or for retirement. Fewer Americans have a specific plan when it comes to saving money compared to two years ago. In 2008, 62 percent of Americans had a savings plan. That number has dropped to 55 percent. Those saving for retirement dropped from 55 percent in 2008 to 49 percent in 2010. “These declining percentages may largely reflect job loss and other income reductions by some who now have more restricted savings options,” said Stephen Brobeck in a press release. He’s the executive director of the Consumer Federation of America and a founder of America Saves. “However, they don’t bode well for the financial future of many Americans,” he added.
Of those surveyed the majority say they’re still concerned with the recession’s impact on their personal finances. Seventy-one percent say they’re still worried about it. The good news is they may not be as worried about it as they once were. Forty-three percent expressed great concern with their personal finances, which is 10 percent lower than a year ago. “The economic crisis we are in the midst of highlights to all Americans the necessity of having a savings plan, some emergency savings, and the value of making savings automatic,” said Dallas Salisbury, Chairman of ASEC and President and CEO of the Employee Benefit Research Institute.
“It is very disturbing that a significant number of Americans are not prepared for routine emergencies, let alone retirement,” said CFA’s Brobeck. During the questioning, very few of those Americans bringing in under $25,000 admit to having a savings plan, saving for retirement at work or saving for retirement outside of work. Just 15 percent said they save money for retirement at work. Those with incomes between $25,000 and $50,000 fared slightly better. Thirty-eight percent are saving for retirement at work and another 38 percent say they’re saving for retirement outside of work. Seventy percent of those who make between $50,000 and $100,000 are saving for retirement at work. “It should be considered a national scandal that only 15% of non-retired low-income families save for retirement at work,” Salisbury added in the news release. The poll was commissioned by ASEC and America Saves. Opinion Research Corporation conducted the survey by interviewing more than 1,000 American adults.
Tags: savings account, Retirement, America Saves, emergency fund, saving, personal finance
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