Despite Lack of Savings, Some Are Still Hopeful

What’s the difference between objective forecasting and cockeyed optimism? A new survey by the credit card comparison site CreditDonkey.com suggests that it’s the difference between some people’s saving habits and their idea of a “comfortable retirement.”

Although 80% of the people surveyed said they were not doing enough to save for retirement, 66% reported having no financial plan for retirement, and 60% said they lived paycheck to paycheck, and almost half (45%) said they still expected to somehow retire comfortably.

“In the wake of the Great Recession, Americans are saving more and reducing debt, including credit card debt,” said CreditDonkey.com founder Charles Tran. “Despite the trend toward more frugal behavior, however, many people still aren’t saving enough to justify their expectation of a comfortable retirement. No doubt, many are simply hoping that the economy will rebound before it’s time for them to retire.”

It is obviously easier for people with higher incomes to save for retirement, Tran pointed out. “But even people with modest incomes can do more to save for retirement,” he said. He advised consumers look for credit cards that offer rewards, including discounts on merchandise and cash back for certain purchases.”

Some highlights of the credit and saving survey are:

• Just 23% of men and 15% of women said they felt they were doing enough to save for retirement;
• About a third of men (36%) and women (32%) said they had a financial plan for retirement;
• Nearly half of men (48%) said they felt they would be able to retire comfortably, compared with just 40% of women; and
• About a third of men (36%) and women (34%) felt that Social Security should be privatized.

From January 4 to January 8, CreditDonkey polled 1,109 Americans, age 18 and over, for their views on credit cards, saving, retirement planning and other financial issues. 

More responses from the Credit and Saving Survey are here.