Meals Out, Pricey Clothes & New Cars Top Spending Regrets for Americans Trying to Save for Retirement, Schwab 401k Survey Finds

By a News Reporter-Staff News Editor at Health & Medicine Week -- New research from Schwab Retirement Plan Services, Inc. reveals that, despite having a positive outlook for retirement, American workers regret past spending and are concerned about being able to ultimately save enough for their golden years. The nationwide survey of 1,000 401(k) plan participants finds that while 70 percent believe their quality of life in retirement will be better than that of both their parents and their children, saving for retirement is still their number one source of financial stress (40%) (see also The Charles Schwab Corporation).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180827005097/en/ Top 5 spending regrets (Schwab 2018 401(k) Participant Survey) (Graphic: Business Wire) Paying for unexpected expenses (40%), being unwilling to sacrifice things that improve their quality of life (34%) and paying down credit card debt (31%) top the list of obstacles participants face when trying to save for retirement in the present. Moreover, two-thirds of participants (64%) wish they had spent less in the past to save more for retirement, particularly on meals out, expensive clothing, new cars and vacations. Conversely, participants are less likely to regret past spending on more enduring and significant items such as housing, weddings, student loans and tuition for their children.

According to the survey, respondents are relying heavily on their workplace retirement plans to help them meet their long-term goals, with 62 percent saying they expect their 401(k) to be their largest source of retirement income. Outside of a 401(k), however, participants may be missing out on opportunities to grow their nest eggs. The survey finds that, beyond their 401(k), participants are more likely to use a savings account to prepare for retirement than they are an IRA or other investment vehicle.

"The survey shows that if given the chance, many Americans would have spent differently on short-term pleasures, especially compared to spending that supports their families' long-term happiness and success," said Steve Anderson, president, Schwab Retirement Plan Services, Inc. "Moreover, participants understand the value of their 401(k)s and the importance of saving for retirement, but the findings suggest that they need guidance to prioritize their financial obligations and make the most of their assets. While there may be hurdles along the way, having a written financial plan can help workers make decisions today with an eye towards the future." A Little Help Goes a Long Way As they plan for the years ahead, respondents recognize the role of a 401(k) in helping them achieve a comfortable retirement, with 88 percent saying a 401(k) is a "must-have" benefit and 90 percent saying they would think twice before accepting a job that didn't offer one. The survey also reveals that many participants are taking proactive steps to try to meet their retirement goals, as 65 percent have increased their 401(k) contribution level in the past two years, and 80 percent believe their 401(k) is in better shape today than ever before.

Keywords for this news article include: Business, United States, Finance and Investment, The Charles Schwab Corporation.

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