People are detailing why they don’t think they’ll be able to save enough money to retire one day
It’s been pounded into the brains of many since they began working: save up for retirement. However, it isn’t always that simple to stowe money away each paycheck. A recent survey of 1,600 Americans detailed their saving habits and how they feel about retirement.
Initially when it came to saving income, 68% of the survey said they saved less than 20% of their post-tax income on a monthly basis. By location, it appears that Northeasterners are the highest savers in the country, while midwesterners are saving the least.
When looking at the amount of savings accounts people have, close to 50% (49.9%) just have one while a combined 43% have two or more. Close to 7% (6.9) of people said they do not have a savings account. When asked how often people dipped into savings a month, 62% said they dip into their savings at least once a month.
Breaking down savings goals, 31% of people say their primary savings goal is for retirement. Next in line is for homeownership at 23%, and 20% said they’re saving for an emergency fund. The survey broke this down even further by gender, finding women are more likely to save for an emergency fund than men, while men are more likely to save for retirement than women.
Looking specifically at how people are saving for retirement, 35% are saving through a 401K and 37% combined are saving through using some sort of IRA. Taking a deeper dive, 22% of people aged 25-34 say they aren’t currently saving for retirement.
Ultimately looking at how prepared people feel about retirement, 21% say they don’t think they’ll have enough money for retirement one day. Others say they would consider taking a second job to help save or they expect their income to increase throughout their career to help save.
The survey then posed the question of why Americans are struggling to save. Credit card debt, mortgage payments, and student loans topped the list. It then broke down where people tend to overspend the most. 56% said eating out, over 21% (21.6) said for entertainment, such as going out for drinks or going to the movies, and just over 15% (15.4) said on subscriptions.
Overall, the survey showed just how much people’s saving habits are impacting their confidence in retirement and the everyday obstacles they’re facing that are limiting their ability to save.