The sixth annual national survey assessing household saving, released today as part of America Saves Week, shows that only about half of Americans reported good savings habits.
- 43 percent said they “have a spending plan that allows you to save enough money to achieve the goals of your saving plan.”
- 50 percent of those not retired said they “save for retirement at work through a 401(k) or other contributory plan.”
- 41 percent said that, “outside of work,” they “save automatically through regular preauthorized transfers from checking to savings or investments.”
- 49 percent know their net worth.
While nearly two-thirds of respondents, 65 percent, reported they “have sufficient emergency savings to pay for unexpected expenses such as car repairs or a doctor visit,” only 49 percent of the non-retired said they’re “saving enough for a retirement in which you will have a desirable standard of living.”
More than half of baby boomers and Generation X will be able to retire with enough money to cover the cost of basic retirement needs as well as uninsured health care costs, but a significant number are at risk of running short of money in retirement, according to the EBRI Retirement Security Projection Model.
The survey also revealed no improvement in the reported financial condition of families over the past year.
From 2010 to 2012, key savings indicators steadily declined. Between February 2012 and February 2013, there was no improvement in the following indicators – spending less than income and saving the difference, 66 percent in 2012 and 65 percent in 2013; having sufficient emergency savings, 66 percent and 65 percent; and among the non-retired, saving enough for retirement, 51 percent and 49 percent.
“The recession still has not ended for millions of American families,” Stephen Brobeck, executive director of the Consumer Federation of America and a founder of America Saves, said in a statement. “Many working families are still suffering from high unemployment rates, stagnant incomes, and a housing market that is just beginning to recover.”
The survey was released the first day of America Saves Week, an annual event where government, business, and non-profit organizations at the national, state, and local levels work together to promote saving money.
America Saves, managed by the federation, and the American Savings Education Council, managed by EBRI, coordinate this annual effort. These organizations commissioned the survey, undertaken by Opinion Research Corp International in early February.
More than 1,300 national, state, and local organizations are participating in the 7th Annual America Saves Week to encourage and assist personal saving.
Among them are the Office of the Comptroller of the Currency, Fidelity, Department of Defense, BB&T, U.S. Department of Agriculture’s National Institute of Food and Agriculture, U.S. Department of the Treasury, and Utah Saves.