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

Con Artists Want Your Sensitive Information and They'll Do Anything to Get It

Consumers Should Look Out for Common Con Tactics To Keep Safe

Oct. 16, 2015 /PRNewswire-USNewswire/ -- Scams and con artists are everywhere and they'll do just about anything to gain access to your personal information and steal your hard-earned money. 

One of your best defenses against fraud is learning to recognize scammers' more common tactics and how they work. AARP Fraud Watch Network has compiled tips on what to watch out for and what to do should you find yourself in a scam.

"It's important as consumers to be aware of the most common tricks used by scammers," said AARP Illinois Communications Manager, Gerardo Cardenas. 

"While scams might change from time to time, the foundations of the scams stay the same. If you know about common tactics used, you can spot a fraud before they have the chance to take anything of value."

Trusting your instincts is always a smart decision, but you need to be aware of these common tactics:

• Phantom Riches: A scammer dangles the prospect of wealth, but can't provide it because the prospects they're selling you don't actually exist.
• Profiling: Scammers develop a victim profile by asking a series of personal questions to find your emotional trigger. Once they know what that trigger is, they can hone in on specific types of scams that work best on you.
• Scarcity: Another way to play with emotions, scammers will offer a product or service that's only available for a limited amount of time "for someone special, like you; so don't miss out." If something is rare or scarce it tends to be more valuable—but these offers are usually fake.
• Credibility: In efforts to build your trust, con artists will claim to be affiliated with a well-known celebrity, reputable organization, or by speaking of a special credential or experience. The IRS is the government agency most commonly mimicked in fraudulent attempts to get your personal information. Another common company mimicked is Microsoft with the con-artist trying to gain access to your computer to fix an issue that they installed through malware ridden folders, links, or emails.

Try to keep these tactics in mind if you're being pitched to from an individual or organization, especially ones you've never heard of. Doing your research and finding out who you're dealing with is important, particularly when it concerns an investment product.  

Check to see if the seller you're working with is registered with the Financial Industry Regulatory Authority or if the product/financial advisory is registered with the Securities and Exchange Commission or your state securities regulator. Should you encounter a scammer contact your local Attorney General's office to report it.

For more information on resources and tips to keep you safe, contact the Federal Trade Commission for identity theft related resources or visits aarp.org/FraudWatchNetwork for tips and alerts on new scams.