NEW YORK (MainStreet) — Wealthier professionals are not immune to the U.S. savings crisis. Some 64% are anxious about the amount of retirement savings they currently have, and retirement ranks second to keeping up with daily expenses as the financial matter that worries Americans most, according to a CBS News study by SSRS in Media, Pa.
“Doctors, lawyers and other older Baby Boomers are finding themselves with woefully inadequate savings as they approach retirement age because they ignored the need to save for most of their life,” said Andrew Murdoch with Somerset Wealth Strategies. “As their incomes grew, so did their spending and they never created a budget.”
“The relative dearth of savings among Baby Boomers is probably the worst of any generation,” Murdoch told MainStreet. “It is certainly much worse than the previous generation, which lived through the Depression. This created great financial insecurity and prodded them to over save and under spend.”
Statistically, Millennials are following in the Boomer’s footsteps.
Adults under 35 years old now have a savings rate of negative 2% after a flirtation with thrift due to the recession, according to Moody’s Analytics.
“People of all ages but especially young people should make a point of being thrifty,” said Murdoch. “That means they should look for sales when they shop, buy a used instead of a new car and search for deals when they go on vacation.”