Report: Americans Lack Personal Savings for Future

The results of a national survey released this week sent shock waves through the financial literacy community, as it underscored that continued wage stagnation and unemployment have resulted in the inability of Americans to save to a greater extent than previously anticipated.

The survey of U.S. adults was commissioned by the Consumer Federation of America, the Employee Benefit Research Institute and the American Savings Education Council.  The results shed light on the fact that approximately two-thirds of Americans are living beyond their means and are not well prepared for their long-term financial futures.

The timing of the survey release coincides with America Saves Week, which is a yearly initiative in which local and national organizations focus on the promotion of savings and assistance to individuals and families regarding their current and future ability to save.

Many financial literacy industry professionals are buzzing over the following facts:

• Only approximately half of Americans say they have a savings plan.
• Only about 40% of Americans say they have a spending plan that enables them to achieve their goals.
• Roughly one-third of Americans lack sufficient emergency funds for unexpected expenses.

Even more shocking is a statistic that comes from the NFCC’s Financial Literacy Survey, which found that more than 30% of consumers have zero non-retirement savings.”

Given these statistics, America Saves Week continues to serve the very important function of highlighting the significance and value of financial literacy so that individuals and families are best educated regarding their overall financial affairs.