Study shows U.S. consumers are saving more for retirement

Younger demographics are leading this financially-conscious movement

By Christopher Maynard

Christopher Maynard is a New York-based writer and editor who has worked as a security guard, high school teacher, theatrical lighting designer and volunteer fireman. He is a graduate of Marist College.  Read Full Bio→  Email Christopher Maynard 

August 22, 2016--About a year ago, a survey showed that U.S. consumers were becoming less inclined to save for retirement because they didn’t want to sacrifice their current quality of life. While they considered tools like a 401(k) plan to be integral towards future security, many just weren’t willing to commit to it.

Now, a new study conducted by Bankrate.com shows a reversing trend; it says that more American workers are saving for retirement. Experts say that this could be a positive sign for a growing economy.

“More working Americans are saving more for retirement and fewer aren’t saving at all,” said Greg McBride, Bankrate.com’s Chief Financial Analyst. “Both readings are indicative of an improving economy, where people are earning more and saving more.”

Gen Xers and Millennials lead the way

The results of the study show that 21% of working Americans are now saving more for retirement than they were a year ago, the strongest improvement in five years.

Additionally, fewer people are completely forgoing the saving process; only 5% of survey respondents admitted that they hadn’t saved anything this year or last year, the lowest result in the history of the study.

So which generations are leading the way in this new financially-conscious movement?

Experts say that consumers belonging to Generation X (age 34-54) are saving the most, followed by Millennials (age 18-25). Members of the Silent Generation (age 71+) are saving the least, followed by younger Baby Boomers (ae 52-61).

McBride says that members of the Silent Generation may be less inclined to save because they are reaching the phase of life where they will be entering retirement; however, not saving can still be very problematic for this group and Baby Boomers.

“Younger Baby Boomers saving less for retirement than last year is troubling because they’re more likely in their peak earning years and should be utilizing higher catch-up contribution limits to get on track for retirement. Those in the Silent Generation that are saving less may be a function of earning less as they phase into retirement,” he said. 

Copyright © 2016 Consumers Unified LLC

50-Somethings Advised to Calculate Their 'Long-Term Care Savings Gap'

If it's too big, it jeopardizes retirement dreams, but there are options

October 26, 2015 /PRNewswire/ -- Most Americans are poorly prepared to pay for long-term care costs, but there's a two-step fix, according to ACSIA Partners, a leading long-term care insurance agency. 

It starts by learning if there's a gap, and how big, between your ability to pay and your likely future expenses.

For most Americans there is indeed a gap. According to a May 2015, report from the U.S. Government Accountability Office (GAO), 52 percent of households age 55 and older have no savings for retirement (let alone long-term care). 

If you're among the 48 percent with some retirement savings, you may be prepared to cover some, but not all, of your probable LTC tab.

What to do?

"Step one," says Denise Gott, CEO of ACSIA Partners, "is to see if you have a gap, and how big." Doing so can take less than five minutes. 

For a rough estimate, Gott recommends entering a few facts into a calculator provided by the U.S. Department of Health and Human Services: http://longtermcare.gov/savings-calculator/.

Here's a sample calculation for a 52-year old woman planning to retire in Florida, who could afford to set aside$300 (earning 4 percent interest) per month starting now. 

She would have a long-term care savings gap of$652,184, based on $839,263 in projected care costs in Florida, for life remaining after age 65, minus $187,079in accumulated savings, as determined by government data and assumptions.

If the woman were married, there would likely be a similar gap for her partner.

Once you know you've got a gap, "the next step is just as simple and almost as quick," says Gott. "Ask a state-certified long-term care agent to help you explore your options." 

This can be done by phone or online. An in-person meeting is optional.

ACSIA Partners offers state-certified agents covering all parts of the country. 

To get in touch with one, just go to the company's website -- http://www.acsiapartners.com -- and submit an inquiry form indicating your state of residence.

ACSIA Partners LLC -- http://www.acsiapartners.com -- is one of America's largest and most experienced long-term care insurance solution agencies with hundreds of agents serving all states. 

The company is also a co-founder and sponsor of the "3in4 Need More" campaign, run by the 3in4 Association, which encourages Americans to form a long-term care plan.

Retirement Elevated Now Reaches Nationwide Course classes held at colleges and universities for pre-retirees and retirees

Oct. 14, 2015 /PRNewswire/ -- Retirement Elevated, a provider of educational courses on retirement and financial planning topics, now reaches nationwide and is offering classes at colleges and universities in more than 20 states. 

The 2-day courses, which are taught by more than 75 active financial advisors and qualified instructors across the country, provide comprehensive information for retirement based on the latest thinking, research and regulations. To locate a class near you log on to www.RetirementElevated.com. 

Retirement Elevated was started by seasoned financial advisors Sean P. Lee, founder and president of Elevated Retirement Group in Utah and Scott Dougan, founder and principal of Global Plains Advisory Group in Kansas with the goal of addressing pre-retirees and retirees biggest retirement concerns. 

"Through the years I have met with so many people who were frightened about their prospects in retirement. More often than not, they were scared because they did not understand many of the retirement planning options available to them. In this scenario, ignorance is NOT bliss – so we created Retirement Elevated to help get you on the right track," said Lee.

Retirement Elevated, which is taught in a classroom setting at colleges and universities, is $49 and includes the workbook and course materials.  The 2-day syllabus is as follows:

Day One:
Section 1—Life Planning: Define your ideal retirement
Section 2—Income Planning: Determine how much money you will need
Section 3— Investment Planning: Invest for your future security

Day Two:

Section 4—Tax Planning: Minimize taxes on your retirement income
Section 5— Healthcare Planning: Insulate your wealth from the unexpected
Section 6—Leaving a Legacy: Protect your estate and provide for your heirs

"People are living longer and providing for their golden years is vital," says Dougan. "Unfortunately, it has gotten much more difficult and complex. Gone are the days of company pensions and who knows how long Social Security will be around. It is now even more important to learn about the different facets of retirement planning. Retirement Elevated does just that – provides information that makes sense in a learning environment so you can make better informed choices about the future."

About Retirement Elevated 

Retirement Elevated is a provider of educational courses on retirement and financial planning topics, taught at universities and colleges in various cities throughout the United States. Course instructors are qualified financial planning professionals with deep knowledge and training in the areas of investments, income, taxes and estate planning for retirement. 

Retirement Elevated, created by seasoned financial advisors, Sean P. Lee and Scott Dougan, works to address pre-retirees and retirees biggest retirement concerns by providing the knowledge, tools and confidence needed to tackle them. With a unique brand of training utilizing 2-day courses, Retirement Elevated believes that if you plan well you can live well and retire well. To find a course near you log on to www.RetirementElevated.com  .

Sean P. Lee, founder and president of Elevated Retirement Group in Utah Investment Advisory Services offered through Elevated Capital Advisors, LLC, a Registered Investment Adviser.  Insurance products and services offered through Elevated Financial Services, LLC.

Scott Dougan, founder and principal of Global Plains Advisory Group in Kansas with Investment Advisor Services offered though Global Financial Private Capital, LLC an SEC registered Investment Advisor.