Americans save little but still financially optimistic

Feb. 26--MANATEE -- American workers continue to skimp on savings yet seem to still be optimistic about their financial future, according to a survey released Monday.

The survey, which kicks off the second annual "America Saves Week," showed 62 percent of respondents have a savings plan with a specific goal, and 42 percent save automatically through preauthorized transfers from checking to savings accounts or investments.

However, only 53 percent save at least 5 percent of their income, and only 28 percent save 10 percent, as experts recommend, according to the national survey of more than 1,000 adults. Only 57 percent of those who are working feel they are saving enough to maintain a desirable standard of living in retirement.

It sounds as if poor savings habits of Americans are staying about the same, said Kris Flammang, investment adviser for LPF Advisors, LLC, of Lakewood Ranch

"We are a credit society," he said. "I just think as long as we continue -- when it's encouraged or is accepted to have lots of consumer debt -- to extend ourselves, I don't feel there's an environment for people to improve."

The survey found 76 percent vowing to pay off mortgage loans before retirement.

Stephen Brobeck, executive director of the Consumer Federation of America, said surprising answers like that one stemmed from overly-rosy self-assessments by consumers.

"Hard data about savings behavior suggest that responses to several questions were buoyed by the personal optimism of respondents," Brobeck said.

The American Savings Education Council and America Saves sponsored the survey for America Saves Week, a national initiative to encourage Americans to save.

Financial planner Tom Kubik, of Kubik Financial Services, LLC, Bradenton, thinks the idea of having a week to draw a national focus on savings is important.

"I think it's a great idea because the savings rate in this nation approaches atrocious," Kubik said.

Other survey results show:

• 41 percent of respondents save a portion of tax refunds, gifts, bonuses or other financial windfalls.

• 81 percent of those with incomes of $75,000 or more save adequately; that percentage falls to about half for those who make $75,000-$35,000, and drops to 34 percent for those making below $35,000 annually.

• Relatively few Americans reported serious debt, with only 21 percent saying their consumer debt, usually credit card balances, is growing or remains the same.

The America Saves Week Web site, at www.americasavesweek.org, offers a savings checklist and features that encourage and monitor savings, officials said.

The Associated Press contributed to this report.