Data & Research January 13, 2011

Americans Want to be Better Savers

Ninety-four percent of Americans are hoping to manage their money better this year, according to an ING survey. This is slightly higher than the global average; 89% of respondents from ten different countries have the same goal.
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A news release said the results come from a Financial Intelligence Quotient (FQ) test conducted by ING to measure the financial literacy of consumers from ten different countries, including the U.S. The survey results indicate that the more financially literate someone is, the happier and more confident they tend to be. Approximately 62% of Americans scored at the “Basic” financial literacy level, which is higher than the global average.

“We know Americans need to save more for their retirement and it’s great to see that better money management is a top priority,” said Rob Leary, CEO, ING Insurance U.S., in the news release “However, while it is encouraging that most Americans want to manage their finances better, it’s time to convert good intentions into action. Americans can take a few simple steps to make progress quickly.”

While ING’s research reveals that 97% of American respondents fully understand that the earlier they start saving for retirement, the better off they will be, only 53% are currently saving for retirement. The reasons given for not saving for retirement include not knowing where to start (29%), postponing getting started (23%), or needing help, but not knowing where to get it (18%).

To help Americans navigate the retirement landscape and help demonstrate the potential long-term financial impact of contribution rate changes in their workplace retirement plans over the long-term, ING has posted a Retirement Contribution Rate calculator at: http://ing.us/individuals/tools-calculators/retirement-contribution. The financial test is at  http://apps.facebook.com/ing-fq-contest/.

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