For the second year in a row, more than one-third percent of Americans are saving less than they did the year before, according to a survey released Monday by America Saves, a coalition of 1,300 consumer, business and government groups.
But the percentage who say they are saving less dropped to 38.3 percent in 2013 from 39 percent last year.
“The recession still has not ended for millions of American families,” said Steve Brobeck, executive director of the Consumer Federation of America and a founder of America Saves. “Many working families are still suffering from high unemployment rates, stagnant incomes, and a housing market that is just beginning to recover. Many households have drained their savings account to survive.”
Brobeck said a push by employers and financial institutions for automatic deductions from paychecks into retirement savings accounts is vital to decrease the number of adults who are saving inadequately.
His recommendation was echoed by Fidelity Investments Retirement & Market Insights Vice President Jeanne Thompson.
“Auto features really work,” said Thompson. She noted that companies with automatic deductions for 401(k) plans have a participation rate of 84 percent.
The Fidelity retirement specialist added one third of all workers who have access to workplace savings plan don’t take advantage of them.
The survey also showed Republicans appear to be more conscientious savers than Democrats.
The poll, which was taken in early February, found 74 percent of Republicans said they have a savings plan with specific goals versus 65 percent for Democrats.
The numbers were up significantly from the last time the question was asked in 2010, when 57 percent of Republicans said they had a savings plan they followed compared to 52 percent for Democrats. The sample size breakdown of party by income level was too small to find if higher pay accounted significantly for the differences.