Retirement savings rate shows no improvement
By Paula Aven Gladych
Most Americans aren’t saving any more for retirement than they were a year ago, and individuals who should be paying more attention to their savings — those between the ages of 50 and 64 — have actually started saving less.
A monthly Financial Security Index survey by Bankrate.com asked respondents how much they are saving in workplace-sponsored and other retirement accounts. More than half said they are putting away the same amount now as they were a year ago. Of those remaining, 18 percent said they’ve increased their savings rate and 17 percent have decreased it.
Of those aged 50 to 64, 15 percent said they're saving more, compared to 21 percent who said they're saving less than they were last year.
The sad truth is that 40 percent of American households haven’t saved anything for retirement, according to Federal Reserve data released in 2012.
Among the 60 percent of people who do save for retirement, the average account balance for those between the ages of 50 and 64 was $100,000, which isn’t enough to maintain their current lifestyle in retirement, according to Bankrate.com.
The survey also found that 20 percent of people without a college degree are saving less for retirement this year, compared to 10 percent of people with a college degree.
Seventeen percent of people earning less than $30,000 didn’t contribute anything in 2013 or 2012 compared to 3 percent of people earning $30,000 or more.
Eighteen percent of respondents younger than 65 say they’re saving less in retirement accounts, while just 7 percent of those over 65 say they are doing the same.
Princeton Survey Research Associates International interviewed more than 1,000 adults living in the U.S. during the first week of August for this research.
Originally published on BenefitsPro.com