Americans Are Putting Away More Savings for Retirement
Survey finds a surge in contributions, especially among younger workers
In what may be another sign of the improving economy, more working Americans are increasing the amount they’re saving for retirement, a new study says.
The survey, conducted by the financial services company Bankrate, found that 23 percent of working Americans increased their retirement savings contributions this year compared with last year. It was the highest share in the past six years of polling.
That’s a major turnaround from 2011, when the economy still was struggling to bounce back from the economic downturn of the late 2000s. Back then, just 15 percent of American workers were able to increase their retirement savings over the previous year, while 29 percent cut them. This year only 19 percent of workers said they had reduced the amount they were saving.
The biggest jump in retirement savings was among younger workers. Twenty-seven percent of millennials said they were putting aside more money for retirement than last year, while 19 percent were saving less and 47 percent were saving the same amount.
Among boomers, 21 percent said they were saving more than in 2016, while 14 percent said they were saving less and 59 percent were saving the same amount as last year.
The survey also found that 33 percent of boomers felt that they are growing their personal wealth, which is more than twice the share (15 percent) who thought they were losing ground. Fifty-two percent said their wealth is about the same as it was a year ago.