NEW YORK, Aug. 15, 2017 /PRNewswire/ -- Twenty-three
percent of working Americans increased their retirement savings
contributions this year compared to last year, the highest reading
in six years of polling, according to a new report from
Bankrate.com. Another 16% indicate they have reduced their
contributions over that time. Click here for more information:
http://www.bankrate.com/banking/savings/financial-security-0817/
The encouraging findings mark a stark turnaround from the 2011
results when just 15% increased their retirement savings
contributions and 29% had cut them. Still, 5% of working Americans
didn't contribute to retirement savings at all this year or last
year, though that number is half of what it was in 2015.
"Working Americans are increasing their retirement savings more
and more as the economic recovery continues, whether by saving the
same percentage of higher earnings or a higher percentage of the
same earnings," said Bankrate.com's chief financial analyst
Greg McBride, CFA.
McBride recommends saving a minimum of 10% – and ideally 15% –
of your income for retirement, utilizing an employer-sponsored
retirement account and an Individual Retirement Arrangement (IRA).
"If you or a spouse have earned income, you are eligible to
contribute to an IRA. In the absence of a workplace retirement
savings plan, it is even more imperative to open an IRA and put
money away on a tax-favored basis for your financial future."
Households earning $50K per year
or more are most likely to have increased their retirement savings
contributions (27% versus 18% who make less than that). Only the
lowest income households – those earning less than $30K per year – are more likely to have cut than
increased their retirement contributions (22% have scaled back
while 20% have boosted contributions).
Every age group under age 63 is more likely to have increased
rather than decreased their contributions. Younger millennial
workers (18-26) lead the way, with 30% increasing their retirement
savings over the past year.
Older workers, however, are scaling back the savings. Older
Boomers (63-71) were slightly more likely to have reduced (16%)
than increased (15%), while those in the Silent Generation (72+)
were overwhelmingly more likely to have reduced (45%) than
increased (13%) their contributions.
Among political affiliations, those identifying as Republicans
are far more likely to have increased their retirement
contributions (27%) than decreased (6%), while Democrats are the
only group more likely to have cut their retirement savings
contributions (22% versus 18%). Independents were more likely to
have increased (25%) than decreased (17%) their contributions.
Those working part-time are nearly twice as likely to have
reduced (33%) rather than increased (17%) their
contributions.
The Bankrate.com Financial
Security Index rebounded slightly from 105.3 to 105.8 this month.
This is now the third highest reading ever, trailing only the 106.7
in June and 106.5 in March. Any figure above 100 is indicative of
improved financial security over the past 12 months.
Again, there is a divergence between the genders. Though both
men and women consistently note improved financial security over
the preceding year, men's feelings of financial security are
stronger and have risen since last month. Women's more moderate
feelings of financial security eased a bit in the past
month.
The survey was conducted by Princeton Survey Research
Associates International. PSRAI obtained telephone interviews with
a nationally representative sample of 1,002 adults living in the
continental United States. Interviews were conducted by
landline (501) and cell phone (501, including 303 without a
landline phone) in English and Spanish by Princeton Data Source
from August 3-6, 2017. Statistical results are weighted to
correct known demographic discrepancies. The margin of sampling
error for the complete set of weighted data is plus or minus 4.0
percentage points.
About Bankrate.com:
Bankrate.com provides consumers with the expert advice and tools
needed to succeed throughout life's financial journey. For over two
decades, Bankrate.com has been a leading personal finance
destination. The company offers award-winning editorial
content, competitive rate information, and calculators and tools
across multiple categories, including mortgages, deposits, credit
cards, retirement, automobile loans and taxes. Bankrate aggregates
rate information from over 4,800 institutions on more than 300
financial products. With coverage of over 600 local markets,
Bankrate generates rate tables in all 50 U.S. states. Bankrate
develops and provides web services to more than 100 cobranded
websites with online partners, including some of the most trusted
and frequently visited personal finance sites on the internet, such
as Comcast, Yahoo!, CNBC and Bloomberg. In addition, Bankrate
licenses editorial content to more than 500 newspapers on a daily
basis including The Wall Street Journal, USA Today,
The New York Times and The Los Angeles Times.
For more information:
Ryan Feldman
Public Relations Specialist
ryan.feldman@bankrate.com
917-368-8637
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SOURCE Bankrate.com