Debt2Assets

Reducing Spending, But Still Not Saving

I came across an article today which discussed the spending habits of baby boomers in light of today’s economy. Baby boomers are the people who were born between 1946 and 1964, the largest segment of the U.S. population.

The article, Many Baby Boomers Concerned About Retirement Savings…, mentioned that 61% of the people in this group are spending less money today, but the money that they are saving isn’t going toward retirement.

Specifically, the Scottrade/BetterInvesting 2008 American Retirement Study states:

Even if confronted with a small wind-fall of $5,000, only 15 percent would deposit the money in an IRA or other retirement account, and almost half (48 percent) would pay down debt, while 32 percent would put the money in a savings account. Just three percent would go on a shopping spree.

The study revealed that most Americans are very concerned about their retirement, but the number of people who are actively doing what they can to ensure a financially secure future doesn’t match up.

With IRAs, 401(k)s, and other investment vehicles at their disposal, many Americans are expressing concern, but are failing to translate concern into real action.

Tags: 401(k), Credit, Debt Relief, investing, IRA, retirement funds, savings