Data & Research February 28, 2012

Americans Cut Costs to Save For Retirement

 

Americans are cutting simple costs to help save more for retirement. 

 

Reported by

A survey from Scottrade Inc. found that Americans are taking action by comparison shopping, using coupons and generally cutting back on unessential expenses such as clothing or entertainment.

In order to reduce their financial concerns this year:

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•  Sixty-nine percent are spending less, compared to 63% in 2011;

•  Sixty-seven percent are using coupons, compared to 59% in 2011; and

•  Sixty-five percent compare prices to find the best deal, compared to 58% in 2011. 

 

The survey data indicates Americans’ uncertainty stems from debt. Weighed down by non-mortgage debt, this year, more Americans—40% compared to 33% in 2011—reported it caused them to save less for retirement. And the trend is expected to continue with 34% stating that non-mortgage debt will cause them to save less for retirement in 2012.

Only 5% of Americans recommend saving 2% or less annually for retirement, yet 55% of Americans reported saving 2% or less in 2011 and 33% plan to save 2% or less in 2012.

Despite these concerns, the majority of Americans (72%) said they are confident in their own abilities to plan for retirement. Overall, 61% of respondents expect to be able to completely retire—and not work again—between the ages of 45 and 74. Fifteen percent of the survey’s respondents have already retired, with the majority doing so between the ages of 45 and 74.

The survey was commissioned by Scottrade and conducted online by Synovate. The survey was fielded with a nationally representative sample of 1,000 respondents from January 5 to 9, 2012.

 

Products February 28, 2012

VALIC Releases Smartphone App for Plan Participants

VALIC released a new mobile application designed for the iPhone and Android-based smartphones.
Reported by

The application allows VALIC customers to access their account information while on-the-go and provides helpful tools for tracking their financial progress.  

With the VALIC mobile application, customers can view a summary of their portfolio, plan and outside assets, as well as check their transaction history, personal performance and industry news. The savings calculator, “Am I on Target?” enables users to determine whether their current savings strategy will be sufficient to meet their long-term savings goals, taking into consideration their VALIC retirement assets, Social Security, and outside plan assets. If the user is not on target, the feature offers calls to action to address the situation, including contacting a financial adviser, changing investment allocations and increasing contributions. Customers can access financial adviser profiles and contact information, as well as contact information for VALIC to facilitate any requests.   

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The free application is available for download through Apple’s App Store and Google’s Android Market. VALIC’s existing Mobile Access service will continue to operate for individuals whose phones are not compatible with the application.   

VALIC is a retirement plan provider for K-12 schools and school districts, as well as for higher education, not-for-profit healthcare and governmental institutions.

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