Americans Pessimistic About Savings
Americans continue to have problems saving money…
A survey released by Consumer Federation of America (CFA) and Wachovia reports that nearly four-fifths (79%) of American’s say they aren’t saving enough or cannot afford to save at all. Many were pessimistic about the nation’s overall savings rate with respondents predicting only 10% of Americans will accumulate $1 million over their lifetime. “Americans are pessimistic about how other Americans are saving and how they will save in the future, noted CFA Executive Director Stephen Brobeck. “In part, this pessimism probably reflects widespread press coverage about the country’s zero or near-zero personal savings rate.”
Two thousand Americans were interviewed in November by Opinion Research Corporation representing the first of several reports to be released before next year’s ‘American Saves Week’ - a program which will be launched by Wachovia in February to educate consumers about finance, budgeting and how to increase / improve savings.
Not surprisingly, respondents making $75,000 or more were roughly twice as likely as those making $25,000 or less to say that they had saved enough money for emergencies or retirement. They were also more likely to believe they could accumulate $1 million during their lifetime. Young adults (18-24 years old) were the most likely demographic group to say they are not saving adequately, at 62 percent versus 52 percent for all Americans.
The factor that seemed to affect respondents most was economic conditions such as heavy consumer debt, unreliable income and high living expenses. Psychological and social factors were also cited with more than 37% citing impulse spending as a problem. Credit cards were cited as a factor by 42% of the respondents. Many blamed credit cards for their failure to save, with 82% saying that avoiding credit card debt was the most effective saving strategy.
