Five percent of all working Americans contributed absolutely nothing towards retirement either this year or last, according to a recent Bankrate Financial Security Index survey. Although Bankrate reports that that percentage has decreased by half since 2015, the number of Americans with little to nothing saved for retirement, or in general, remains alarming.
Overall, many Americans are moving in the right direction: Over the last year, 23 percent of all U.S. adults increased their retirement savings. Millions are ramping up their 401(k) plans.
Millennials between the ages of 18 and 26 proved the most likely to have started saving more, with 30 percent reporting that they've increased their contributions in the last year. That uptick stems in part from a number of economic factors, including a strong job market and low unemployment rate.
"Working Americans are increasing their retirement savings more and more as the economic recovery continues, whether by saving the same percentage of higher earnings or a higher percentage of the same earnings," says Greg McBride, CFA and Bankrate's chief financial analyst.