A new survey has found out that Americans’ retirement savings may not improve in 2017 as most of the savers don’t intend to increase the contribution amount next year. Many people failed to save enough for retirement in 2016 due to reasons like increasing health care expenses. Some Americans also admit that they haven’t even started to save towards retirement benefits.
Survey Says Americans’ Retirement Savings May Not Improve in 2017
The survey that says Americans’ retirement savings may not improve in 2017 was conducted by NerdWallet, a website dedicated to personal finance. It found that only 29 percent of the respondents were confident of the fact that they have made enough savings this year. About one in three respondents admitted that they haven’t been saving for retirement at all.
The Reasons for Lack of Retirement Benefits Savings
The main reason behind why Americans haven’t got much retirement benefits savings is that other financial obligations are considered to be more important. The financial obligations include health care bills and expenses that were highlighted by 35 percent respondents to lack of emergency savings. It was also highlighted by 35 percent of respondents. Lack of retirement savings is a concern for 28 percent respondents while credit card debt was highlighted by 27 percent respondents. The last one is a serious concern because a NerdWallet’s analysis has unearthed the fact that credit card debt now averages at $16,060. It has increased by 11% in the last decade only.
Kyle Ramsay who serves as CFA, Head of Investing and Retirement for NerdWallet has stated that every dollar that Americans have to put away for health care, debt and other vital expenses is a dollar that is not saved for retirement. He added that the struggle to keep up with the competing financial priorities is a part of the reason why Americans of all age groups are falling behind in the retirement savings goals.
Why Americans’ retirement savings may not improve in 2017?
The survey results clarify the reason on why Americans’ retirement savings may not improve in 2017. It mentions that about 70 percent of people who are saving for retirement, only 32 percent are planning to increase the contributions to the workplace retirement accounts. The survey also highlighted that 43 percent of Millennials are not saving at all for retirement and it applies to 30 percent of respondents in all age groups.