Americans are spending less but not necessarily saving more as the economy slides. According to a survey by Bank of America:
- 62% are either behind schedule or have not started retirement planning.
- 18% made early withdrawals from retirement accounts.
- 43% think they’ll work longer.
- 59% don’t have a good idea of how much they’ll need to save to maintain their current standard of living after retirement.
“With income being the same or lower and expenses going up, there’s less to allocate to savings,” says Craig Averill, of Bank of America. Still, dipping into retirement funds “should be at the bottom of the list,” he says.
His advice? Don’t let fear keep you from reviewing your savings. “It can be painful to do a cash flow statement, but it’s necessary,” he says.
Source: The Associated Press