CINCINNATI, April 22, 2016 /PRNewswire/ -- The path to achieving financial milestones like paying for a college education, buying a car, owning a home and retiring at an early age always begins with one step: saving for the future.
A recent study by Fifth Third Bank (NASDAQ :FITB ) found many Americans haven't set aside the savings to support their financial goals. In fact, 47 percent of respondents frequently live paycheck to paycheck. The results revealed interesting insight into our nation's approach to saving for the future.
Most are unprepared for the unexpected.
When an unpredicted expense pops up, survey results show Americans aren't prepared with a backup plan.
- More than half1 of those surveyed know an emergency fund should hold six months of living. expenses, yet two-thirds2 of Americans don't have that amount in savings.
- 30 percent don't have an emergency fund at all.
Americans know how to plan for retirement, but aren't taking that knowledge to the bank.
- 46 percent of Americans agree retirement savings should begin in a person's 20s, but more than half3 don't contribute to a 401K, IRA or other retirement plan.
- 84 percent of those surveyed know their retirement savings should reflect their age, expenses, standard of living and health status, yet only half4 know the exact amount of their current retirement fund.
- 60 percent of baby boomers, those currently reaching retirement age, consider themselves "financially savvy," but two-thirds5 of this generation are carrying the burden of credit card debt into retirement.
"Setting aside six months of income for an emergency fund and planning for years of retirement can seem like an impossible task," notes Jada Grandy, senior vice president and Community Reinvestment Act strategies director at Fifth Third. "I advise anyone starting to save to begin with small goals, like putting away $10 each week. As that reserve grows, focus on building an emergency fund with three to six months of living expenses. Saving a little away today can mean a lot is available tomorrow."
Focused on their commitment to provide actionable, practical advice to those seeking financial independence, Fifth Third created its Top Ten Steps to Financial Empowerment, available at www.53.com/life. The Bank is dedicated to financial empowerment and offers its free L.I.F.E. (Lives Improved through Financial Empowerment®) programs to consumers through many ages and stages of life.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $141 billion in assets and operates 1,254 full-service Banking Centers, including 95 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,593 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has an 18.3% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2015, had $297 billion in assets under care, of which it managed $26 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third's common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Fifth Third Bank was established in 1858. Member FDIC
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1 55 percent of respondents know how much money is recommended for an emergency fund.
2 69.3 percent of respondents do not have six months of living expenses saved in an emergency fund.
3 55.2 percent of respondents do not contribute to a 401K, IRA or other retirement plan.
4 49.9 percent of respondents know how much money is currently in their retirement account.
5 69 percent of baby boomer respondents are in credit card debt.
SOURCE Fifth Third Bank