Tough economic
times in the US notwithstanding, there are some positive signs on
the personal savings front, reveals a survey of employed adults
undertaken by The Hartford in April.
In its study, the life
insurer found there has been an increase in confidence among
consumers and this is being translated into more people saving for
retirement.
Go deeper with GlobalData
“Americans are known for
their optimism and that is being reflected in their increasing
participation in retirement plans, even as the economy continues to
struggle,” said E Thomas Foster Jr, vice-president of the insurer’s
retirement plans group.
“More people say they are
saving for retirement and focusing on reaching their retirement
savings goals.
“It is a promising time for
employers and financial advisers to promote the importance of
retirement savings.”
Specifically, The Hartford
found that participation in 401(k) and other defined contribution
retirement plans by employed adults across all age groups, male and
female, has risen to 76 percent overall in 2011, up from 71 percent
a year ago and up 63 percent from two years ago.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThree demographic sub groups
of respondents, noted The Hartford, showed the biggest
gains:
- participation by members of
the Baby Boomer generation (defined by The Hartford as those age
over 46) increased to 79 percent, up from 71 percent in 2010 and
from 63 percent in 2009; - among Generation X consumers
(ages 32 to 46), 77 percent contributed to their employer’s
retirement plan in 2011, up from 71 percent in 2010 and 67 percent
in 2009; and - participation by men jumped
to 81 percent from 71 percent in 2010 and from 66 percent in
2009.
However, it was not good news
on all fronts.
The Hartford found
participation by Generation Y consumers (ages 19 to 31) in their
employer’s retirement plans reflected a decline of two percentage
points compared with 2010.
The Hartford also noted that,
among women of all ages, seven in 10 contributed to their
employer’s retirement plan. This figure remains unchanged from the
previous year, when women showed a much greater improvement than
men, with those contributing rising from 61 percent to 70
percent.
The Hartford’s findings were based on a survey of 1,000
employed adults aged 18 to 65 who had a minimum annual household
income of $25,000.
