There’s no arguing we’ve made strides financially since the economic downturn. A recently released report by the Consumer Federation of America (CFA) reveals just how far we’ve come: 70 percent of Americans cited in the report have made at least some progress in meeting savings needs; 66 percent say they save at least some of their income.
Those with a savings plan, the report shows, have a much higher saving success rate than those without. In comparison:
• Sixty-one percent of those with a savings plan know their net worth; 33 percent of those without a savings plan know their net worth.
• Eighty-five percent of those with a savings plan are reducing their debt or have no debt at all; 64 percent of those without a savings plan are reducing their debt or have no debt at all.
• Eighty-four percent of those with a savings plan are spending less than their income, and saving the difference; 46 percent of those without a savings plan are spending less than their income and saving the difference.
• Seventy-nine percent of those with a savings plan have sufficient emergency savings; just 46 percent of those without a savings plan have sufficient emergency savings.
“The research clearly demonstrates that those with a plan are nearly two times as likely to spend less than they earn and save the difference,” says Nancy Register, director of America Saves.
Savings plans, however, are not foolproof, according to the report. Only about half (52 percent) of non-retired Americans included in the report are saving enough to support a desirable standard of living in retirement.
“It’s a common theme to see expenses and debt get in the way of retirement savings,” says Kathy Stokes, director of the American Savings Education Council, “but even saving just a small amount can add up over time.”
Source: Consumer Federation of America
Published with permission from RISMedia.