Headline: 49% of Americans aren't saving for retirement
America has a serious problem saving for retirement. About 49% of Americans say they aren't contributing to any retirement plan, according to a new survey conducted by LIMRA, a trade association for the financial services industry. "The findings from this survey were disturbing, given that people will increasingly need to rely on their personal savings to make ends meet in retirement," said Matthew Drinkwater, associate managing director at LIMRA's retirement research division. People ages 18 to 34 are the least likely to be saving, with 56% reporting that they are not currently contributing to a retirement plan like an IRA or a 401(k). "In order to have the adequate savings necessary to meet their financial needs in retirement -- which could last 20 or more years -- it is critical that these individuals begin saving systematically early in their working years," Drinkwater said.Source: finance.yahoo.com
Headline: Read between the lines of rising consumer credit
Amid an economy full of imbalances, it's hard to read too much into the consumer credit report that shows Americans are borrowing more. Reaching for the plastic. FORTUNE – U.S. consumers had long been known for their love of credit until the financial crisis changed everything. Credit cards and loans were suddenly out of favor as credit markets tightened and millions saddled with debt lost their homes to foreclosure. Now the latest data have some suggesting that those days are fading. In March, U.S. consumer credit expanded by 10.2% to $2.54 trillion – the fastest pace since late 2001, according to Federal Reserve data released Monday. What's more, February's expansion was revised up to $9.27 billion from an initial estimate of $8.73 billion. The jump has surprised economists, who watch the data closely for a glimpse on the behavior of consumers. Their spending helps drive the economy, and so it's easy to think the surge in credit signals that consumers are healing. But it's still too early to tell. At this point, it would only be right to buy into the most downbeat interpretation since the figures don't say much beyond the likelihood that consumers borrowed more out of circumstance or because they were in a bind as opposed to feeling good about their financial prospects.Source: finance.fortune.cnn.com
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