U.S. Savings Rate Drops, Most Americans Not Saving for Retirement
The U.S. savings rate has dropped to a five-year low and two-thirds of Americans say their personal financial future will be uncertain in five years, a PurePoint survey finds. At the same time there’s been a shift in how Americans define the American Dream.
According to the study, Americans once defined financial success as buying a home or retiring. 69 percent of respondents said not having to worry about money means financial success. 64 percent said not living from paycheck to paycheck. The survey also found Americans’ retirement is at risk, too. Only 52 percent of respondents have money saved in a retirement account and one in three Americans save 10 percent or less from each paycheck.
The good news is 20 percent of those surveyed are “super savers,” people that make saving for retirement a habit, 40 percent of them set aside money from each paycheck into savings.