Bankrate: Despite Economic Recovery, Retirement Savings Still Suffer

Despite the economic recovery, at least 10% of American workers still aren’t saving for retirement. And among those who are contributing to retirement savings, many are putting away less now than they were in recent years.

One in 10 workers surveyed by Bankrate in a recent national phone survey said they did not contribute this year or last year, and 14% are saving less than they were a year ago.

“With millions of Americans behind in their retirement savings, it is important not only to save but to save more each year,” said Greg McBride, CFA, Bankrate’s chief financial analyst, in Bankrate’s release of the findings. “Even for those saving the maximum, 401(k) contribution limits increased for 2015, affording the opportunity to put more away for retirement.”

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There were some positive findings in the Bankrate survey, however, including 19% of respondents who reported they are saving more in their retirement accounts than they were last year. The 14% who said they are saving less than last year is an improved figure from 29% who last year reported saving less year over year.NewImage

For people nearing retirement, the survey found those ages 50 to 64 were three times as likely as people entering the workforce to say they are “less secure” about their feelings around job security compared with 12 months ago.

Written by Elizabeth Ecker

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  • The key is to start saving/investing early in life and be consistent (save with every paycheck). Taking advantage of a matching 401k plan should be a no brainer. The power of compounding is lost on many people. Also maxing out contributions when possible, eliminating debt, avoiding risks with your nest egg, planning for multiple streams of income once retired (social security, pensions, dividends, part time work, etc.) and making catch up contributions once you reach 50 should all be part of everyone’s plan. And work at staying healthy to reduce illness, injuries and medical costs. I recently found the site Retirement And Good Living which provides information on all these issues as well as many other retirement topics and also has several retirement and health calculators.

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