A solid budgeting foundation can be a great way to solidify an individual’s financial future, but many people may not be taking the proper steps to accomplish this.
More than 90 percent of Americans noted that they need to put money toward their retirement plan, according to a report from Capital One. However, just 72 percent are actually doing this. Just 20 percent of those polled explained they are saving 10 percent or more of their earnings for retirement, and just 50 percent noted that it needs to be more than that amount. The guidance on savings is approximately 12.1 percent of all earnings, though the average amount is just 6.4 percent of all money earned.
“Unfortunately, saving for retirement is often put on the back-burner for what seem like more pressing financial priorities, such as paying for college,” said Dan Greenshields, president of Capital One ShareBuilder, Inc. “Now more than ever, Americans are responsible for ensuring their own financial security during retirement, and the earlier you begin to plan and save, the better.”
Approximately 58 percent of individuals want to retire by the time they reach 65 years of age, the report showed. However, close to the same percentage are not confident they will have enough money to accomplish their goal.
Many Americans look toward financial future positively
Even with some of the savings issues that Americans have, many are still confident that they will be able to improve their financial standing and reach retirement. According to a report from Country Financial, a total of 57 percent felt they would have enough money to retire the way they want, when asked in December. This was nearly identical to the two previous surveys.
“It’s great to see more Americans are optimistic about their 2014 financial situation,” said Joe Buhrmann, manager of financial security support at Country Financial.
Debt is another factor that consumers thought they would get a better handle on. The report explained that 79 percent felt they would be able to take care of their debt as the due date came around, slightly higher than the previous level of 78 percent, recorded in June.
A total of 61 percent of Americans noted they had the finances to help their child go to college, the report added. This was slightly improved from both six months and a year earlier, when 59 percent said this.