Financial Frugality is Back in Style for Retirement Saving

Sixth-annual study shows new trends in thriftiness, highlights impact of debt on savings

ST. LOUIS--(BUSINESS WIRE)-- Americans are more conscious today of where every dollar is spent. And they are responding by cutting simple costs to save for retirement. A new survey from investing company Scottrade, Inc. found that Americans are taking action by comparison shopping, using coupons and generally cutting back on unessential expenses like clothing and entertainment.

Kim Wells, Scottrade's executive director of product development and chief marketing officer, said, "Our company was founded on the notion that everyone deserves a good value. Scottrade's award-winning philosophy on fair pricing, and our 32-year history of low commissions and never charging account nuisance fees, gives our clients confidence that they won't be nickel-and-dimed." (Photo: Business Wire)

“Americans are simply looking for ways to save more and spend less,” said Kim Wells, Scottrade’s executive director of product development and chief marketing officer. “They are feeling a financial pinch in more areas of their daily routine – from filling their gas tanks to heating their homes. These behaviors demonstrate that people are more mindful of their financial situations.”

Uncertainty about future circumstances is compelling nearly all Americans to take action, according to the sixth annual survey of consumer attitudes and behaviors regarding retirement and retirement planning.

In order to reduce their financial concerns this year:

69 percent are spending less, compared to 63 percent in 2011;
67 percent are using coupons, compared to 59 percent in 2011; and
65 percent compare prices to find the best deal, compared to 58 percent in 2011.

“By understanding that they shouldn’t overpay, more Americans are comparing prices to find better deals for themselves,” Wells said. “Our company was founded on the notion that everyone deserves a good value. Scottrade’s award-winning philosophy on fair pricing, and our 32-year history of low commissions and never charging account nuisance fees, gives our clients confidence that they won’t be nickel-and-dimed.”

The survey data indicates Americans’ uncertainty stems from debt. Weighed down by non-mortgage debt, this year more Americans – 40 percent compared to 33 percent in 2011 – reported it caused them to save less for retirement. And the trend is expected to continue with 34 percent stating that non-mortgage debt will cause them to save less for retirement in 2012.

This explains the ‘Do as I say, not as I do’ theme Scottrade’s research uncovered. Only 5 percent of Americans recommend saving 2 percent or less annually for retirement, yet 55 percent of Americans reported saving 2 percent or less in 2011. And the trend of under-saving should continue as 33 percent plan to save 2 percent or less in 2012.

Despite these concerns, the majority of Americans, 72 percent, said they are confident in their own abilities to plan for retirement. Overall 61 percent of respondents expect to be able to completely retire – and not work again – between the ages of 45 and 74. Fifteen percent of the survey’s respondents have already retired, with the majority doing so between the ages of 45 and 74.

About the 2012 Scottrade American Retirement Survey

The survey was commissioned by Scottrade and conducted online by Synovate. Fielded with a nationally representative sample of 1,000 respondents between January 5-9, 2012, the survey examined attitudes, behaviors and trends related to retirement. All participants were at least 18 years of age and were involved in making investment decisions in their households. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence. This is the sixth year in a row Scottrade commissioned a survey of Americans’ current viewpoints about retirement and retirement investing.

About Scottrade, Inc.

Investors who enjoy online stock trading will find value and personalized customer service at online investing firm Scottrade, Inc. Founded in 1980, Scottrade enables customers to learn about online trading tools, stock market research and how to buy stocks online, many at just $7 per trade. With more than 500 nationwide branch offices, Scottrade has the largest branch network among online brokerage firms. To learn more about one of FORTUNE magazine’s “100 Best Companies to Work For,” visit about.scottrade.com or www.scottrade.com and follow us on Facebook, Twitter, YouTube and Flickr. Member FINRA/SIPC.