More Save for Retirement

When it comes to retirement savings, nearly two out of three (65%) U.S. adults say they save some portion of their household’s annual income for retirement, an increase of 5 percentage points since last year, according to the 2018 Financial Literacy Survey, conducted by Harris Poll on behalf of the National Foundation for Credit Counseling (NFCC).

Despite the fact that most save at least something for retirement, fewer than one in five (19%) feel very confident they are saving enough—and about three in 10 (29%) reveal they are not at all confident. When asked what areas of personal finance worry them most, the top response was retiring without enough money set aside (16%), followed closely by having insufficient “rainy day” savings (14%).

The survey found that where adults save or invest their money varies. As in previous years, 66% continue to use a savings account, but the use of 401(k) plans (37%) and investments/mutual funds (30%) has increased since last year—from 32% and 26%, respectively.

During a media call to kick off National Retirement Planning Week, April 9 through 13, Bruce McClary, vice president of communications at the NFCC, said men have the highest levels of financial confidence but are less likely than women to reach out for financial advice.

Seventy percent of respondents have non-retirement savings, but men have more. Greater than one in three women have no non-retirement savings.

According to McClary, the survey shows that Americans of all ages are challenged by financial commitments. The survey found more this year having debt in collection or paying bills late. Further, more respondents were carrying a balance on their credit cards.

The survey was conducted between February 28 and March 2, among 2,017 adults ages 18 and older.