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2021 SUPER SAVER SURVEY
7 surprising budget trends of retirement super savers
They saved even more during the pandemic. They don't mind old cars and smaller houses. They're starting even younger. Welcome to the everyday earners with enviable retirement accounts.
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TREND 1
Super savers span all income levels
Half of survey respondents make less than $100K.
<$34,999
$35K - $74.999
$75K - $99.999
>$100K
Who is a super saver?
Plan participants who save 90%+ each year of the max retirement contributions ($17,550+ in 2020) [61% of respondents] OR participants who defer 15% or more of their salary into retirement accounts [39% of respondents].
TREND 2
Long-term commitments help them maximize savings
The pandemic didn't change that. (Over half saved even more.)
Findings:
- They began saving for retirement in their 20s.
- Parents are a big influence.
- Their choices feel unremarkable to them.
Super savers have a variety of motivations.
1
Financial security
2
Retirement lifestyle goals
3
Early retirement
4
Unexpected events
Super savers are content with the basics.
1
Older vehicles
2
Reduced travel
3
DIY home chores and projects
4
Modest homes
TREND 3
Their savings confidence and commitment remain high
Super savers saved more during the pandemic.
54% of super savers recommitted during the past 18 months, putting away more thanks to decreased spending and/or stimulus payments.
Invested additional money in the market
31%
No financial decisions or changes due to COVID-19
28%
Increased my deferral/savings percentage on my retirement savings account
22%
Met with my financial professional regarding my retirement savings and investment
17%
Changed my investment allocation stock to more aggressive investments
15%
Increased the amount I'm saving in an individual retirement account (IRA)
12%
Invested additional money in the market
No financial decisions or changes due to COVID-19
Increased my deferral/savings percentage on my
retirement savings account
Met with my financial professional regarding my
retirement savings and investment
Changed my investment allocation stock to
more aggressive investments
Increased the amount I'm saving in an
individual retirement account (IRA)
31%
28%
22%
17%
15%
12%
Nearly all save for the unexpected
have an emergency savings fund
have more than $10,000 in emergency savings.
have enough to cover 6+ months of expenses.
TREND 4
Super savers are interested in more ways to invest
That may include diverse investment options in employer-sponsored retirement plans.
TREND 5
Super savers expect to keep working, save more, and have a long retirement
TREND 6
Gen Z already has super savers
The youngest super savers are gaining momentum.
They typically defer 15% or more of their salaries.
Their pandemic changes included:
Characteristics
- Use new technology (phones, computers)
- Rely on apps to manage finances, and YouTube and Reddit for financial information
- Prioritize adventure and travel
- Shop online, do takeout
Saving motivations
- Unexpected events
- Early retirement
Sacrifices
- Live with parents longer or have roommates
- Rent vs. purchase a home
- Walk, bike, use public transportation
TREND 7
Almost anyone can mimic super saver behaviors
You can:
- Live within or below your means.
- Pay off your credit card balance monthly or don't use credit cards.
- At a minimum, defer enough of your salary to receive the maximum employer match.
- Defer at least 10% of your salary to an employer-sponsored retirement plan.
- Increase your retirement deferral rate each year you receive a raise.
- Create an emergency savings fund.
Employers can:
- Stretch the match: incentivize participants to increase their contributions.
- Create immediate eligibility and vesting.
- Add automatic enrollment, increase, and sweep to retirement plans.
- Offer more savings options within the sponsored retirement plan.
- Provide a way for participants to create an emergency savings fund.
- Supply financial wellness education such as life stage planning.
- Look at ways to help employees phase into retirement.
Learn more
Contact your local Principal® representative or your support team:
Annuities and income solutions: 866-309-1623
Retirement plans: 800-952-3343
Mutual funds: 800-222-5852
SURVEY METHODOLOGY AND RESPONDENTS
Online survey
15-minute survey conducted by Principal
Field dates
July 05, 2021 - July 12, 2021
Super saver respondents
1,408 Retirement plan participants
Margin of error
+/- 2.6% at a 95% level of confidence
Savings behavior
61% contributed $17,550+ to their sponsored retirement plan in 2020.
30% had a deferral percentage of 15%+.
Qualifications
Age 19-56
U.S. resident
Consumer has a retirement plan with Principal
Background
Principal conducts periodic "pulse" surveys with customers to gain insight into timely topics. This annual survey focuses on providing holistic perspectives on key trends and timely issues in today's market and economy.
The survey findings reported here explore consumer concerns and actions surrounding saving and planning for retirement, financial behaviors related to COVID-19.
PQ12556K-02 | 09/2021 | 1836861-092021