That’s according to a report from Bankrate.com, which says that even though 23 percent of working Americans increased retirement savings contributions this year, compared with 2016—the highest reading in six years of polling—another 16 percent say they’ve cut their contributions instead.
And 5 percent aren’t saving at all.
But while every age group under age 63 is more likely to have increased, rather than decreased, how much they’re putting away, younger millennials are leading the pack. Thirty percent of those aged 18–26 have increased their retirement savings over the past year.
It’s a different story for older workers, though, who are dialing back on retirement savings. Older boomers, aged 63–71, were slightly more likely to have reduced (16 percent) than increased (15 percent), while those in the so-called silent generation (age 72+) were overwhelmingly more likely to have reduced (45 percent) than increased (13 percent) their contributions.
That seems logical enough, as even if they’ve postponed retirement, the older they get the more likely they are to be retiring rather than still working.
When it comes to political affiliations, those identifying as Republicans are far more likely to have increased their retirement contributions (27 percent) than decreased (6 percent), while Democrats are the only group more likely to have cut their retirement savings contributions (22 percent) than to have increased them (18 percent).
Independents were also more likely to have increased (25 percent) than decreased (17 percent) retirement savings.
Those working part-time—again, unsurprisingly—are nearly twice as likely to have reduced (33 percent) rather than increased (17 percent) their contributions.
And a result of income inequality’s effects is that households earning $50,000 per year or more are most likely to have increased their retirement savings contributions (27 percent, compared with 18 percent of those who make less than that).
Only the lowest-income households—those with earnings lower than $30,000 annually—are more likely to have cut than increased their retirement contributions; 22 percent have scaled back, while 20 percent have increased contributions.