Older Workers More Likely to Decrease Retirement Savings

Nearly one-quarter, 23%, of working Americans increased their retirement savings contributions this year, the highest reading in six years of polling, according to Bankrate.com. However, 16% are saving less, and 5% are not saving at all.

In 2011, only 15% increased their retirement savings contributions, and 29% cut them.

“Working Americans are increasing their retirement savings more and more as the economic recovery continues, whether saving the same percentage of higher earnings or a higher percentage of the same earnings,” says Bankrate.com Chief Financial Analyst Greg McBride.

Among households earning $50,000 or more a year, 27% increased their retirement savings. Among households earning less than $50,000 a year, only 18% increased their retirement savings. Among households earning less than $30,000 a year, 20% boosted contributions, but 22% scaled them back.

A larger percentage of every age group younger than 63 increased their savings than decreased them, with Millennials, i.e. those between the ages of 18 and 26, leading the way. Nearly one-third, 30%, of Millennials increased their retirement savings in the past year. Older workers, however, were more likely to have cut back on their contributions than increased them. Sixteen percent of older Boomers, i.e. those 63 to 71, cut back on their savings, while 15% increased them. Forty-five percent of those in the Silent Generation, i.e. those 72 and older, cut back on their retirement savings, while 13% increased them.

Part-time workers were more likely to decrease contributions than full-time workers (33% versus 17%).

Princeton Survey Research Associates International conducted the landline and cellphone survey for Bankrate.com among 1,002 adults in early August.