According to the Bureau of Economic Analysis (BEA) Americans are continuing to put savings at the forefront of their financial planning. The report indicated that the personal savings rate was 3.3 percent in September, an increase from the August rate of 2.8 percent and significantly higher than the rate a year ago. In September 2008, American consumers saved 1.3 percent of their incomes or $140.3 billion. September 2009 boasted a total of $355.6 billion, an increase of $215.3 billion over last year.
The findings reinforce a new dedication in the American psyche. A dedication that is further underscored by the fact that only one in four workers feel very confident about their retirement planning, and the BEA’s findings that personal income decreased by $100 million in September.
Cathy Weatherford, president and CEO of the Insured Retirement Institute (IRI) responded to the BEA’s findings saying, “The good news with the numbers released today is that personal savings clearly continues to be a priority for the vast majority of Americans, many of whom are still concerned about the overall state of the economy and their individual financial stability.”
Weatherford continued, “With Social Security on the decline, and employer based retirement plans a thing of the past, it is imperative that we all take steps today to secure our financial future… By exploring retirement options and building a comprehensive plan that includes a balance between Social Security, 401(k) investments, pensions and insured retirement strategies, a secure financial future is still very much possible.”
For more on the BEA and the results of their report, visit www.bea.gov.