American households displayed marked improvement in their optimism about their future financial prospects, but a significant portion have no retirement savings or plans, according to a Federal Reserve report released Wednesday.
A survey of more than 5,800 U.S. residents found that 29 percent expect their income to be higher in the next year, up from 21 percent in 2013, according to “Economic Well-Being of U.S. Households.”
But economic preparedness is lacking, the report said.
Just over half of respondents said they could handle a $400 emergency without selling something or borrowing money. And 31 percent said they have no retirement savings or pension. And 38 percent said they don’t plan to retire or plan to continue working as long as possible.
That sentiment was more common among lower-income households, the report said.
Thomas Coe, an associate professor of finance at Quinnipiac University, said it’s not surprising that people plan to work indefinitely, given the severity of the recession that ended nearly six years ago.
“Overall, the survey does illustrate that more financial education and financial planning is needed for all income levels,” Coe said.
