A majority of Americans with 401(k)-type savings accounts are
accumulating debt faster than they are setting aside money for
retirement, further undermining the nation’s troubled system for old-age
saving, a new report has found.
Three in five workers with defined contribution accounts are “debt
savers,” according to the report released Thursday, meaning their
increasing mortgages, credit card balances and installment loans are
outpacing the amount of money they are able to save for retirement.
The
imbalance is expanding even as policymakers are encouraging people to
set aside more by offering generous tax breaks and automatically
enrolling workers in retirement accounts that in some cases
automatically escalate the amount of money over time.
Currently,
workers with retirement savings accounts put aside more than 11 percent
of their pay for retirement — 5 percent in their own accounts, and
6.2 percent in Social Security.
READ MORE: http://www.washingtonpost.com/business/economy/many-americans-accumulating-debt-faster-than-theyre-saving-for-retirement/2013/10/23/b7a9c85e-3b3e-11e3-b6a9-da62c264f40e_print.html
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