Savings dearth puts comfortable retirement at risk
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Fewer Americans say they are saving enough to live comfortably in retirement, according to a new survey.
Fifty-two percent of nonretired Americans surveyed said they are saving enough for a retirement in which they will have a “desirable standard of living,” down from 55% last year and 58% in 2008, according to the survey released Monday by America Saves, a campaign managed by the Washington-based research and advocacy organization Consumer Federation of America and the American Savings Education Council, part of the Washington-based Employee Benefit Research Institute.
The January survey of more than 1,000 adults also found that men were more likely to save than women at 57% versus 47%.
For those adults not saving enough for retirement, 27% said day-to-day expenses are the main factor that hampers their ability, while 25% cited debt as the main factor, and 12% cited education expenses and debt, the survey found.
When asked the highest percentage of their salary that they would contribute to an employer-sponsored retirement plan with automatic escalation, 82% of respondents said they would contribute more than 3% of their salary, while 40% of respondents said they would contribute 10% or more, according to the survey.
At the same time, 70% of respondents reported at least some progress in meeting savings needs, 66% reported saving at least some of their income, and 63% reported sufficient emergency savings for unexpected expenses, the survey showed.
“It’s a common theme to see expenses and debt get in the way of retirement savings,” Kathy Stokes, director of the American Savings Education Council, said in a statement accompanying the survey results. “But even saving just a small amount can add up over time.”
The survey was conducted by research firm ORC International Inc., according to the statement.
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