I recently read that the US personal savings rate increased to 3.60% in November 2012, up from 3.40% in October but well below the long-term average of 6.91%.
I also recently read about a study conducted by PBS.org that states that 40% of all workers are currently not saving for retirement. Given the struggles the US is having with the Social Security System, this 40% figure is certainly a huge concern. Who will take care of these folks when they cannot take care of themselves?
One strategy I suggested to a client recently was to encourage their children to begin saving for retirement by offering to match their savings (50 cents on the dollar, up to a certain maximum) by making contributions to a Roth IRA for them. By doing this, your children learn the power of saving at a young age and see how adding a matching contribution to that savings rate can really add up quickly. Try this with your kids (or nieces and nephews) for a few years and you’ll likely be amazed at the results.