Fewer than two-fifths (38%) of American households report good or excellent progress in meeting their savings needs, with over one-quarter (27%) indicating no progress at all, according to the 10th annual American Saves Week survey.
The survey findings were released on the first day of the eleventh annual America and Military Saves Weeks, Feb. 27-March 4. More than 1,500 nonprofit, government, and business organizations, including credit unions, at the national, state, and local levels have joined to promote personal savings.
America Saves, managed by the Consumer Federation of America (CFA), and the American Savings Education Council (ASEC) coordinate the week. With their support, ORC International undertakes the savings survey. This research firm interviewed a representative sample of 1,007 adult Americans on Jan. 29-29 by phone.
The survey also found that 23% of American save no income, while 65% have insufficient emergency savings.
Only 46% said they have a savings plan with goals, a decrease from 62% in the 2008 survey. Similarly, 46% of respondents said they are saving for retirement through work, a drop from 55% in 2008.
The Great Recession and recovery from this debacle help explain these trends,” said Stephen Brobeck, CFA executive director and a founder of America Saves. “During the decade, employment, incomes, stock prices, and home values declined then rose, first depressing personal saving and then allowing it to grow,” he added.
Between 2007 and 2013, according to the Federal Reserve Board’s Survey of Consumer Finances, median net worth (in 2013 dollars) declined by 40%, to $81,200 from $135,400.