In the U.S., 35 per cent say they haven’t started saving for retirement yet

A new study by U.S. firm FlexJobs has found that more than a third of Americans have not yet started to save for retirement.

The study was featured in detail in a recent article in Consumer Affairs.

The study, carried out in June of this year, involved interviews with 2,000 U.S. workers. “The group answered questions about their current and future retirement plans,” the publication explains.

“Overall, 65 per cent of the survey respondents reported they are currently saving for retirement, with 35 per cent not yet starting their savings plans. Of that group, 20 per cent said they aren’t currently saving, but have plans to start in the future,” the article notes.

Fewer women than men said they were saving for retirement – 61 per cent of men versus 52 per cent of women, the article continues.

Major differences were seen in savings rates when the data was crunched by generation, the article reports.

“Baby boomers represented the largest percentage of retirement savers, with 61 per cent saying they’ve been saving for retirement. On the other hand, 58 per cent of Gen Xers and 46 per cent of millennials reported the same,” Consumer Affairs notes.

“However, over 25 per cent of millennials and nearly 20 per cent of Gen Xers said they aren’t currently saving for retirement but plan to start in the future,” the article adds.

“These results aren’t wholly surprising, as baby boomers are closer to retirement age and have likely had a longer period of time to save,” states Keith Spencer of FlexJobs in the article. “Those who are at earlier stages in their careers may also have competing financial priorities, like student loan debt, which can impact their ability to save. Similarly, different generations have experienced varying economic conditions, which could disproportionately affect career opportunities and savings potential.” 

Do the survey’s authors have any encouraging words for those among us who are yet to put that first retirement savings dollar into an account? Is it too late for them?

“It’s never too late for consumers to start planning and saving for retirement,” Spencer tells Consumer Affairs. “It’s important to begin by establishing some clear retirement goals that account for factors like your ideal retirement lifestyle and your target retirement age. From there, you can start creating a budget, tracking your income and expenses, and prioritizing saving wherever possible. Consumers should also explore any employer-sponsored retirement plans that might be available to them through their workplace, which can be particularly beneficial if their employer offers matching contributions.” 

The article concludes by warning newbies of several factors that can impact retirement savings plans – financial constraints (i.e., your ability to set aside anything for retirement), market volatility, “societal spending pressures,” caregiving responsibilities and a lack of financial literacy.

If you are worried about how to invest your savings – and aren’t in a pension plan or retirement program at work – then the Saskatchewan Pension Plan may be just what you’ve been looking for. You decide how much you want to contribute to your SPP account, and we do the rest – professionally investing your savings in a low-cost pooled fund, and growing your nest egg until it’s time to retire. Then, SPP member options include a lifetime monthly annuity payment or the more flexible Variable Benefit.

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