SavingsAccounts Poll Compares Savings Between Generations And Outlines New Rules For Retirement Planning

01/30/2013 Posted by admin

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SavingsAccounts releases results of a poll in which most respondents believe they are as good as or better than their parents at saving cash. But savings data and retirement surveys of American employees suggest that these perceptions are overly hopeful. The savings habits of the current generation of American workers trail those of their parents’ generation. The SavingsAccounts poll found that 49 percent of respondents believe they are doing a more satisfactory job of saving money than their parents. Another twenty-two p.c said they were saving as well as their mum and dad, and 30 % believe they are “worse” or “much worse” at saving money than the prior generation. . Those results are contrasted sharply by the Department of Economic Analysis’ personal savings info, which show that Americans’ personal savings rate averaged only 3.48 p.c of revenue over the prior 10 years, regardless of a raise to 5.8 p.c in 2010. Even the recent 5.8 percent high does not come close to matching the ten year average private savings rate of 9.63 p.c in 1981. “The 1980s were renowned for many things mullets, parachute pants, fluorescent colours and building your own dynasty, thanks to high interest savings account rates of fourteen percent or more,” asserts Richard Barrington, private finance expert at MoneyRates and author of the poll research.

“These days, successful saving, among measly bank rates below 1 percent, means following a replacement set of rules.” . Barrington’s research shows just how gigantic an obstacle today’s interest rates are to savers. According to Federal Reserve data, 3-month CD rates were above fourteen p.c in early 1981. Those CD rates were significantly under one p.c in the first quarter of 2011. Savings account rates and cash market rates have suffered similar declines.

Lower IRs need people to save a far larger share of income to amass the same amount of wealth. Barrington suggests a brand new set of rules for retirement planning : . One – Saving more to make up for puny growth . 2 – Keeping expectations low – figuring out savings plans presuming today’s modest rates and factoring in lessened stock exchange expectancies . 3 – Building savings into a once per month budget . 4 – Heeding tough lessons learned by the last generation – remaining frugal to get ahead in happy times when rates are high, in anticipation of rates heading south again . 5 – Rigorously picking the best high-interest account by life stage and comparing high interest saving account rates online . For more analysis and details of Barrington’s suggestions for retirement saving, read “CD rates up to fourteen p.c : The simplest way to save like it’s 1981 free press releases ” at SavingsAccounts . About SavingsAccounts . For more than a decade, SavingsAccounts has been a leading buyer resource helping folk efficiently discover the most reasonable rates on high-interest accounts, money market accounts and certificates of deposit (CDs). With daily rate updates, no-nonsense savings guidance and detailed bank information, the site has been featured at the web site the site GetRichSlowly and FoxBusiness . Press contact : . 479-739-2690 . Pr (at) savingsaccounts (dot) com.

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