Today we’ll compare the reason that respondents to the Survey of Consumer Finances gave as most important for their families’ saving, between 1989 and 2013. What was the largest change over the years? Retirement. (Liquidity actually remains the overall most popular reason for families’ saving.)
In 1989, there were far more employer sponsored pension plans available to workers than there are today. According to the Social Security Administration, the proportion of workers participating in DB pension plans fell from 38% in 1980 to just 20% in 2008. As always, I encourage everyone who is interested in learning about forecasting their retirement savings to check out our open-source project here.
Most important reason for their families’ saving