Consumers are delaying saving cash now and that's creating potential problems for the future. New studies are showing that for the third year in a row, people are forgoing retirement saving. According to the Employee Benefit Research Institute's annual Retirement Confidence Survey, the percentage of workers who have less than $10,000 in savings has grown to 43%. That number is up from 39% one year ago. In addition, workers who have less than $1,000 in savings have grown to 27% from 20% last year.
Saving habits have changed
Studies are showing that the economic downturn changed consumers' savings habits. The hefty unemployment rate and the lack of credit options worked together to create a difficult situation for consumers. Adding to that problem were the mortgage issues and the suspension of corporate 401k matches. Combined, all these things caused Americans to have to tap into savings and that move left them with diminished nest eggs for the future.
The result of a decline in savings
The decline in savings is set to make some serious changes in the future of Americans. First of all, without a nest egg squared away, many people are already accepting the need to postpone retirement. No longer are workers looking to exit the workforce in their mid-60s. In today's world, they are looking for a much longer work-life that extends well into their 70s. A growing number of Americans say they will continue in the workforce for as long as they are able. ... click here to read the rest of the article titled "Cash Now is being Focused on Paying Down Debt"