The state of saving: How much, how well and what it means
Savings rates and self-ratings: The baseline, the differences and the connections
It’s clear that there are major differences across various sub-groups when it comes to how much employees are actually saving and how they would characterize the strength of their savings behaviors.
With savings rates, 8% seems to be the dividing line. About half of employees say they’re saving 8% of their income or more, with the other half saving 8% and below.
There are notable extremes at both ends, as 20% say they’re saving more than 15%, while 21% say they are currently saving 2% or less.
In characterizing the strength of how they save, most employees consider themselves average savers.
42% of employees say they're good or very good savers | 29% say they're poor or very poor savers.
With this baseline in mind, we found noticeable differences based on:
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Age
Those closest to retirement say they save more and see themselves as better savers.
of those aged 55-64
of those 65+ save more than 8%
Employees who rate their savings skills as "Good" or "Very Good"
GENDER
Men say they save more and give themselves a better rating of their savings skills than women.
of men save above 8% vs
of women
51% of men rate themselves as good/very good savers | Only 32% of women rate themselves good/very good savers.
RACE
Asian-Americans report the highest saving rates and self-ratings, while Hispanics report the lowest.
of Asian Americans say they save 15% or more.
of Hispanic respondents say they save 2% or less.
of Asian Americans rate themselves as good/very good
compared to
of Hispanics rate themselves as good/very good.
Education
There is a direct correlation between savings rates and education levels. With each increasing level of education attained, there’s a subsequent increase in savings rates and ratings of savings behaviors.
Savings rates above 8%
Rating behavior
Those with a High School degree rate themselves Good/Very good.
Those with an Associates degree rate themselves Good/Very good.
Those with a Bachelor's degree rate themselves Good/Very good.
Those with a Master's degree rate themselves Good/Very good.
Those with an MD rate themselves Good/Very good.
Those with a Doctorate rate themselves Good/Very good.