More Saving for Retirement, but Few Confident It’s Enough

When it comes to retirement savings, nearly two in three (65%) U.S. adults say they save some portion of their household’s annual income for retirement, an increase of five percentage points since last year, according to The 2018 Financial Literacy Survey, conducted by Harris Poll on behalf of the NFCC (National Foundation for Credit Counseling) between February 28 and March 2, 2018, among 2,017 adults ages 18 and older.

Despite the fact that most are saving at least something for retirement, fewer than one in five (19%) feel very confident that 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 is still retiring without having enough money set aside (16%), followed closely by insufficient “rainy day” savings (14%).

The survey found where adults are saving or investing 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 2017 (from 32% and 26%, respectively).

During a media call to kick off National Retirement Planning Week, 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. More than one in three women have no non-retirement savings at all.

According to McClary, the survey shows Americans of all generations are increasingly challenged by financial commitments. The survey found more this year with debt in collections and who are paying bills late. In addition, more respondents are carrying balances on credit cards. McClary says Millennials, and more specifically Millennial women, are carrying more debt than other generations.