Saving for retirement remains a priority for nearly all Americans - with nearly four in 10 ranking it as their most important financial obligation and 95% of people saying a retirement savings plan at work is one of the most important benefits an employer can offer, according to a new study from leading investment management firm, American Century Investments. In fact, American workers value their retirement plans so much that half would choose to work for a company that offers a retirement plan compared with one in five who would choose a company that does not, but offers a 5% higher salary.
However, more than 80% of Americans believe they could have saved more for retirement with 90% expressing regret in not doing a better job saving. And, when it comes to putting money away for retirement, individuals grade themselves an average of C+.
That’s a rough self-assessment and those surveyed know it, with nearly all individuals saying they would have advised their younger selves to save more if they could and 70% admit they could have saved more in the first five years that they worked than they did.
Having debt, not earning enough at their jobs, and unexpected expenses remain the biggest reasons investors do not save more. And, debt continues to stand out as the primary reason, followed by not earning enough.
Interestingly, even with the acknowledgment that they might not have saved enough, three-quarters of individuals aged 55 to 65 and more than eight out of 10 ages 25 to 54 predict that their standard of living in retirement will be at least as good as it is now.