Americans Missing Retirement Savings Goals, Says Merrill Edge Chief

Americans' best intentions to save money for retirement are not being matched by their actions, said Aron Levine, Head of Merrill Edge.
By Gregg Greenberg ,

Americans' best intentions to save money for retirement are not being matched by their actions, said Aron Levine, head of Merrill Edge, a unit of Bank of America (BAC) - Get Report .

The 2015 Fall Merrill Edge Report shows that 59% of Americans set a goal to save for retirement this year, but only 31% have achieved their goal to date. Furthermore, the respondents in the survey admitted that their finances could have been in better shape recently, with 36% of those surveyed wishing they had stuck more to a budget in the last five years.

According to the survey, many Americans postpone savings due to the high value they place in large investments they deem worthwhile. For example, the majority of those who incurred debt to pay for large expenses, such as their children's education, their own education and cars agree these financial obligations have been "worth it." This sentiment is especially prevalent as it relates to real estate where 94% of Americans have no regrets about how much they've spent on real estate in the past several years.

"A lot of our clients see real estate as a long-term investment, which is probably a good thing," said Levine. "There is a confidence that if you buy a piece or real estate now that over time it will appreciate and you are actually getting an investment as part of it."

As for a solution, Levine said Americans need to remain steadfast to their goals in 2016, seeking financial guidance and support to stay on track. He said Americans need to outline their financial goals and develop a corresponding plan to pursue their desired lifestyle.

The Merrill Edge report revealed an increased trend of optimism heading into 2016, with the majority of respondents saying they're focused on saving more (68%), spending less (67%) and investing more (53%).

Finally, Levine said the disappointing recent earnings reports from the likes of Macy's (M) - Get Report and Nordstrom (JWN) - Get Report will likely not keep Americans from spending on gifts this holiday season. In his view, consumers may be shopping more online as opposed to venturing out to department stores.

"I think the holiday shopping season is alive and well and hopefully people get back on the savings train once it's over," said Levine.

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