Why Workers Aren't Boosting Retirement Savings

“The power of compounding makes time your greatest ally when saving for retirement, and adds an urgency to contribute now not later, giving your money more time to grow,” Bankrate.com’s  chief financial analyst Greg McBride said in a statement. “At any age, there is no better time than the present to ramp up retirement contributions.”

Reasons, Excuses

The study also looks at why more working Americans have not been increasing their retirement contributions this year. Twenty-four percent of those surveyed said they are comfortable with the level of their retirement savings or the amount they contribute — a response that increases with age.

Twenty-three percent of respondents cite stagnant or decreasing income as why they are not saving more, a response that skews heavily to the lowest earners who are nearly twice as likely to say this than any other income group.

Sixteen percent of respondents explain they are focusing on another financial priority, and 12% cite rising household expenses. Another 12% say they have not got around to increasing their contribution; this is a common response of younger millennials and those with lower-than-average household incomes.

“The reasons Americans cite for not increasing retirement contributions indicate a continued lackadaisical approach to retirement savings — whether it is complacency with current contributions, focus on other financial priorities, rising household expenses or just not getting around to it,” McBride said.

“Saving for retirement needs to be made a bigger priority for the millions of Americans that aren’t saving, got started late, or are behind on their retirement savings. Millennials, in particular, have the most to lose by waiting to contribute or delaying a boost in contributions.”