Americans want to save more money for retirement, but the biggest obstacle they face is the debt they have amassed – six-in-ten workers say non-mortgage debt is making it harder to save for retirement.
Those are the findings of a new LIMRA Secure Retirement Institute survey that found the top financial priority for 54 percent of American household is to save more money with retirement being the top goal they wanted to save for.
In 2017, total U.S. household consumer debt reached $13 trillion, according to the Federal Reserve Bank. LIMRA Secure Retirement Institute finds 71 percent of American workers hold some type of non-mortgage debt – such as car loan, student loan or credit card debt. Six in 10 workers said paying down non-mortgage debt was negatively impacting their efforts to save for retirement.
Millennials, the generation most saddled with student loan debt, are the ones who are struggling the most in the bid to save for retirement. LIMRA finds only 23 percent of Millennials are saving for retirement outside the workplace.
But it’s not just that generation that has run up debt: the research shows that only 31 percent of all workers with non-mortgage debt were saving outside the workplace for retirement, compared with 69 percent of workers without non-mortgage debt.
Despite consumers wanting to save more money, half of consumers surveyed stated they felt financially secure and 60 percent even said they were optimistic about their financial future. Additionally, half of Americans said they are confident they will be able to live the retirement lifestyle they want.