ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Wednesday, December 13, 1995 TAG: 9512130044
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
Many full-time American workers, despite a hefty increase in retirement savings this year, still are not putting away enough to maintain their living standards when they quit work, a survey found.
The fourth annual Workplace Survey, released Tuesday, found working Americans had boosted their annual savings by 21.6 percent, to $2,160. The survey was conducted for Colonial Life & Accident Insurance Co. and a private group promoting worker savings programs.
The increase reversed a two-year downward trend after savings reached $2,688 in 1992. They fell to $1,932 in 1993 and to $1,776 in 1994.
``This is good news for workers who expect to enjoy a retirement standard of living close to what they have had when working,'' said Workplace Pulse spokesman Bill Bennett.
``However, workers are still not saving as much as they were in 1992,'' he added. ``After years of declining savings, the key question is, Will middle-aged and older workers be able to make up the deficit? Unfortunately, the outlook is bleak.''
For years, government officials and private economists have expressed concerns over Americans' savings rates. They contend that most retirement plans are like a three-legged stool - Social Security benefits, employer retirement plans and personal savings.
But a Labor Department study of 1994 Census Bureau data found that 56 percent of the 13.2 million retirees 65 and older receive no pension income other than Social Security.
The Workplace Pulse survey found that 71 percent of Americans still working full time acknowledge they are saving too little for retirement. Only 24 percent thought they were saving about the correct amount.
The survey revealed that all income groups increased their savings last year. But the largest increase was among workers aged 25 to 34 who are saving 33 percent more this year than they did last year - $1,740, compared with $1,308 in 1994.
Workers aged 35 to 44 are saving 21 percent more this year - $2,088, compared with $1,728 in 1994 - and workers aged 45 to 64 are saving 5 percent more - $2,844, compared to $2,706 in 1994.
The average total retirement savings from all sources for those aged 45 to 64 is only $109,075, the survey found, far less than necessary to meet expected needs.
Workplace Pulse estimates workers with no other income would need $268,068 to retire at age 65 with a $24,000 annual income, not including Social Security.
The telephone survey of 1,000 full-time employed workers was conducted Nov. 7-10 by Pulse Surveys of America Inc., for Colonial Life & Accident Insurance Co. and the Employers Council on Flexible Compensation.
The council is a nonprofit membership association formed in 1981 by several Fortune 500 companies to study and promote 401(k) and other elective retirement plans.
LENGTH: Medium: 60 linesby CNB