How retirement super savers are shaking off inflation
The past year has seen record-breaking inflation and market volatility. But that doesn’t seem to shake super savers. They adapt, pivot, and most likely save more as their end goals remain the same—financial independence and to retire early.
How plan design can be the catalyst for super savers. Share this article with your clients.
SAVE
annually save
90%+
of the maximum contribution ($17,550+ in 2021).
DEFER
defer
15%+
of their salary into retirement accounts.
Which state has the most Principal super savers as of 2021 savings data?
A) New Jersey
Incorrect >
B) North Dakota
Correct >
C) Illinois
Incorrect >
NORTH DAKOTA
- North Dakota
- Massachusetts
- Connecticut
- South Dakota
- New Hampshire
- New Jersey
- Maryland
- Illinois
- Colorado
- Virginia
INSIGHT 1
Super savers seem to shrug off inflation and market volatility.
Not much rattles the savings habits of super savers. Record-breaking inflation, rising interest rates, and talks of a recession might have them evaluate and adjust their spending, but they continue with their current savings plan and look for opportunities to save more.
Their top financial concern: (hover below to reveal)
INSIGHT 2
Super savers are continually looking for more ways to save
4 out of 10
INSIGHT 2
Super savers are continually looking for more ways to save.
INSIGHT 3
Saving is a habit they built through consistency.
Super savers are content with the basics.
- Driving older vehicles
- Owning a modest home
- Not traveling as much as they want
- Doing DIY projects and household chores themselves
Want to learn more?
SURVEY METHODOLOGY AND RESPONDENTS
Online survey
15-minute survey conducted by Principal
Field dates
June 24 - July 5, 2022
Super saver respondents
1,120 retirement plan participants: 9% Gen Z, 53% Gen Y, 39% Gen X
Savings behavior
- Contributed $17,550+ to their retirement plan in 2021 and had a deferral percentage of 15% or higher (31%)
- Contributed $17,550+ to a retirement plan in 2021 (33%)
- Deferred 15% or more to their retirement plan (36%)
Qualifications
Age 18-57, U.S. resident, participates in a retirement plan at Principal, qualifies as a super saver by meeting one of the following criteria: Saving 90-100% of the 402(g) maximum contributions, electing a deferral percent of 15% or higher.
Background
Principal conducts annual surveys with customers, employers, financial professionals, and consultants to gain insights into timely topics. This survey findings reported here explore consumer concerns and actions surrounding savings for retirement and financial behaviors related to market volatility and current events.
Margin of error
+/- 2.9% for workers at the 95% confidence level
This information is intended to be educational in nature and is not intended to be taken as a recommendation.
Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, Iowa 50392.
PQ12556K-04 | 09/2022 | 417951-092022