Markets and Economy
Trends in retirement savings that can facilitate better outcomes
Tracking actual spending and saving behaviors uncovers interesting findings
In these uncertain economic times, most people are focused on the near term and doing all they can to manage the hurdles the COVID-19 pandemic has put in front of us. For some, that meant drawing from retirement savings to weather financial hardships. When this crisis passes, it will be important to refocus on long-term retirement management and recalibrate planning for the future. Experts from the Employee Benefit Research Institute and J.P. Morgan Asset Management collaborated on a first-of-its-kind study of household fiscal behaviors through good times and bad. The report examines the implications of saving and spending patterns on retirement not just within but outside employer-sponsored plans, including debt, spending choices, other savings and investments.
Key Highlights include:
- The impact of a mere 3% on retirement readiness
- Which specific categories of spending are preventing saving
- The effect – or lack thereof – salary differences have on saving patterns
