Four-in-ten retirement plan participants ndicate that their household is currently not saving enough to meet financial goals.
Just over half (52 percent) of retirement plan participants expect to have sufficient income to live comfortably in retirement, but despite confidence that their financial situation will improve in the coming year, there are concerns about savings and debt.
Roughly two-thirds of plan participants surveyed by Spectrem Group report that their financial situation today is better than it was a year ago. Seven-in-ten (72 percent) optimistically forecast that it will be stronger next year.
But four-in-ten also indicate that their household is currently not saving enough to meet financial goals, while a near-equal percentage (39 percent) said they are concerned about their household’s current level of debt.
Not surprisingly, Millennial-aged retirement plan participants are the most optimistic about their current financial situation (73 percent) as well as their financial futures (84 percent). Gen Xers, who were hit hardest by the 2008 economic collapse, self-report the most concern about their level of savings (48 percent) and debt level (46 percent).
Women plan participants are sending mixed messages about their vision of a financially secure retirement. On the one hand, they are near equally as likely as men to say that their financial situation has improved from a year ago (64 percent vs. 65 percent of men). They are more likely than men to say they expect their financial situation will be even better next year (74 percent vs. 70 percent).
But at the same time, they are significantly more likely than men to express concerns that their household is not saving enough to meet financial goals (49 percent vs. 33 percent). Men and women are near-equally focused about their households’ amount of debt (40 percent vs. 38 percent of men).
These concerns are no doubt holding down the percentage of plan participants, who express overall confidence that they will have enough savings to live comfortably in retirement,
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.