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Deutsche Bank Report: 47 Percent of Americans Have No Savings

By    |   Friday, 17 April 2015 09:49 AM

Here's yet another sign of the woeful financial predicament confronting many Americans.

A total of 47 percent of us had a zero or negative savings rate as of 2013, according to a report from Deutsche Bank Chief International Economist Torsten Slok obtained by The Daily Beast.

The good news: that's down from a peak of 48 percent in 2010. The bad news: that's not much of a rebound. "This is depressing news," notes Daily Beast guest writer Michael Maiello.

He doesn't think the savings gap is a matter of choice. "In the aftermath of the financial crisis, it is hard to believe that those who have money to save would choose not to save it," Maiello says.

"Thrift is not an answer. Only dealing with the structural inequities in the economy can work."

And what does that entail? "Wage growth, debt reduction and further shifting the burden of taxation away from those who cannot even fund a bank account," Maiello argues.

Average hourly wages rose only 2.1 percent in the 12 months through March.

When it comes to retirement savings, bad news comes in the form of a report from the Insured Retirement Institute, an association for the retirement income industry, focusing on baby boomers.

The survey found that just 60 percent of them report having saved some money for retirement, down from about 80 percent in prior years. Only 19 percent of Boomers have $250,000 or more saved for retirement.

"Yet at the same time, many boomers with smaller retirement savings may have unrealistic retirement expectations," the report states.

Four out of 10 Boomers with less than $250,000 saved for retirement and no private pension believe they will be able to pay for their basic needs and medical expenses in retirement, and have at least some money left over for travel and/or other leisure activities.

During the past year, nearly a quarter of boomers reported experiencing difficulties paying their rent or mortgage, and 19 percent stopped contributing to a retirement account.
The percentage of boomers feeling extremely or very confident they will have enough money to last throughout retirement has declined significantly, to 27 percent of boomers in 2015 from almost four in 10 in 2011.

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A total of 47 percent of us had a zero or negative savings rate as of 2013, according to a report from Deutsche Bank Chief International Economist Torsten Slok obtained by The Daily Beast.
47%, zero, savings, rate
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2015-49-17
Friday, 17 April 2015 09:49 AM
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