Having financial strategies that focus on multiple types of savings is a good way to try and plan for the future. However, while saving money may be on many people’s minds, it may not be approached correctly by some.
Savings interest among individuals polled exceeded 70 percent, according to the Personal Savings Index from America Saves. However, the savings effort put in by these people was just 62 percent.
Despite the gap in place, there are still positives to the report. One of these is that both aforementioned scores surpassed the measurement of perceived effectiveness of saving money, which was 58 percent.
“Our new savings index measures the perceptions of savers, not the actual reality of savings,” said Stephen Brobeck, executive director of the Consumer Federation of America and a founder of America Saves. “However, these personal perceptions strongly influence saving realities as well as satisfaction with these realities.”
Young people had the most interest in saving money, with this measurement being 77 percent, the report explained. The effort from this group was also highest, as it sat at 66 percent. Savings was least important to those who were 65 years of age and older, as interest was just 56 percent and effort was only 53 percent. Those who were between the ages of 35 and 44 and 45 and 54 had the same level of interest, as it was 73 percent. Despite this, effort was slightly higher for the latter group, as that measurement was 64 percent, compared to the former group’s 61 percent.
Many Americans worry about retirement possibilities
While many people are making some effort to save, optimism may be lacking about the end product.
Nearly 60 percent of those polled felt they needed to worry about their monthly bills more than anything else, according to a report from Wells Fargo. This was higher than the 52 percent recorded in 2012. Close to half said they are not sure they would be able to save for retirement, while more than one-third noted that they would not retire until they were 80 years old.
“We do this survey every year and for the past three years, the struggle to pay bills is a growing concern and the prospect of saving for retirement looks dim, particularly for those in their prime saving years,” said Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust.