America Saves Week may be winding down, but if a recent survey is indicative of anything, it’s that Americans want to “keep on keeping on” when it comes to putting money away.
Over half of U.S. households said saving more money is their top financial priority, according to a survey by LIMRA Secure Retirement Institute. Among wannabe savers, 56 percent ranked retirement as one of the top three reasons they desire to do so.
The Institute found debt reduction, financial planning and smarter spending to be commonly-named financial priorities, as well. But in spite of having the best intentions, it appears many households aren’t doing so well on the money front.
The Federal Reserve Bank reported that U.S. consumer debt rose to an all-time high of $13.5 trillion last year. According to LIMRA’s findings, seven in 10 U.S. workers have some type of non-mortgage debt, and six in 10 say it’s interfering with saving for retirement. Non-mortgage debt might include car loans, student loans or credit card debt.
Of workers with this type of debt, only 31 percent reported saving outside the workplace for retirement, while nearly 70 percent without non-mortgage debt reported saving. The study results show that Millennials make up a significant portion of non-savers—just 23 percent are socking away retirement savings. LIMRA suggests this could be due in part to student loans and credit card debt eating away at earnings.
While reality would suggest otherwise, survey results show the majority of Americans remain optimistic in the face of financial challenges. Half of the survey respondents report feeling financially secure and half say they are confident about attaining a favorable retirement lifestyle.
Jessica Claeys is an editor, writer, and graphic designer, who has been creating both print and digital marketing and communications content for 10+ years.
Jessa Claeys is a licensed insurance producer in the state of Colorado and an insurance editor for Bankrate. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Jessa has over a decade of experience writing, editing and leading teams of content creators. Her work has been published by several insurance, personal finance and investment-focused publications, including BiggerPockets, 401(k) Specialist, BP Wealth and more.
