The vast majority (87%) of US adults claim to be saving money, according to a YouGov survey, and about one-third of US workers who save money put aside more than 10% of their paychecks for savings. The most common reasons for saving money are for retirement (31%) and for travel or a vacation (30%), per the report.
Not too surprisingly, older Americans ages 55 and older are the most likely to be saving with retirement in mind (36%). For youth (18-34), travel (34%) is the top reason for saving, followed by a closely bunched grouping that includes a new home (23%), retirement (22%), a new car (21%) and a consumer item such as a TV or smartphone (21%).
Youth in recent years have switched from a spending to a saving mindset, according to Gallup, which separately chronicled declined daily discretionary spending among Millennials.
Overall, 89% of 18-34-year-olds report saving at least some money, on par with the 55+ bracket and higher than Gen Xers (82%).
The likelihood of saving money is – predictably – larger for adults in higher income brackets. Virtually all adults (96%) with income of at least $80k save money, with retirement (49%) the highest priority.
As one would expect, respondents with children under the age of 18 have different savings goals than those without kids. In particular, these adults are more likely to save for a new home, for a new car, and for higher education.
Many Fret About the Level of Their Savings
Even workers saving money have concerns about retirement, per YouGov’s report. In fact, 71% agree that they worry they won’t have enough saved to retire at the age they want to. Moreover, 73% agree that they feel anxious about having enough saved in case they encounter an unexpected financial setback.
Previous research has indicated that American adults’ biggest financial worries are the inability to pay the medical costs in the event of a serious illness or accident, and not having enough money for retirement.
In 2015, survey data revealed that almost half (48%) of American adults would be unable to make a major purchase, such as a car, appliance or furniture, or pay for a significant home repair if they needed to.
Separately, a comprehensive MarketingCharts study on Millennials and Financial Services found that youth are worried about not having enough money saved to retire, with this being second only to not being able to support a family when it comes to their top financial concerns for the future.
About the Data: The YouGov results are based on a survey of 1,116 US adults, weighted to be representative of all US adults (18+).