Nearly 80% of Retirement Savers Restart Contributions After Stopping Due to a Financial Setback
Principal Financial Group reveals that 60% of retirement savers have reduced, stopped, or withdrawn contributions at some point, according to a recent survey. Despite these setbacks, 50% managed to catch up to their original savings trajectory. 78% of those who paused contributions eventually resumed saving.
The survey identified key reasons for reducing savings, including high monthly expenses, lower income, unexpected life events, and debt repayment. Essential expenses, house down payments, and job loss were primary drivers for withdrawals. Three-quarters of respondents felt they had no alternative when modifying their retirement contributions.
Among top savers (those contributing 15%+ of annual income), 65% also utilized IRAs compared to 39% of lower-contribution savers, indicating a trend toward diversifying retirement investment vehicles beyond 401(k) plans. Notably, 40% of these high-contribution savers had previously paused or modified their retirement savings at some point.
Principal Financial Group rivela che il 60% dei risparmiatori per la pensione ha ridotto, interrotto o prelevato contributi in qualche momento, secondo un recente sondaggio. Nonostante questi ostacoli, il 50% è riuscito a recuperare il proprio percorso di risparmio originale. Il 78% di coloro che hanno sospeso i contributi ha successivamente ripreso a risparmiare.
Il sondaggio ha identificato le principali ragioni per la riduzione dei risparmi, tra cui spese mensili elevate, reddito inferiore, eventi imprevisti e rimborso dei debiti. Le spese essenziali, i pagamenti per l'acquisto di una casa e la perdita del lavoro sono stati i principali motivi dei prelievi. Tre quarti dei rispondenti hanno dichiarato di non avere alternative quando hanno modificato i loro contributi pensionistici.
Tra i risparmiatori di punta (coloro che contribuiscono con il 15% o più del reddito annuale), il 65% ha anche utilizzato IRA rispetto al 39% dei risparmiatori a basso contributo, indicando una tendenza a diversificare i veicoli di investimento per la pensione oltre ai piani 401(k). È interessante notare che il 40% di questi risparmiatori ad alto contributo aveva precedentemente sospeso o modificato i propri risparmi pensionistici in qualche momento.
Principal Financial Group revela que el 60% de los ahorradores para la jubilación han reducido, detenido o retirado contribuciones en algún momento, según una encuesta reciente. A pesar de estos contratiempos, el 50% logró recuperar su trayectoria de ahorro original. El 78% de aquellos que pausaron sus contribuciones eventualmente reanudaron el ahorro.
La encuesta identificó las principales razones para reducir los ahorros, incluyendo altos gastos mensuales, ingresos más bajos, eventos de vida inesperados y pago de deudas. Los gastos esenciales, los pagos iniciales de vivienda y la pérdida de empleo fueron los principales impulsores de los retiros. Tres cuartas partes de los encuestados sintieron que no tenían alternativa al modificar sus contribuciones para la jubilación.
Entre los principales ahorradores (aquellos que contribuyen con el 15% o más de sus ingresos anuales), el 65% también utilizó IRA en comparación con el 39% de los ahorradores de menor contribución, lo que indica una tendencia a diversificar los vehículos de inversión para la jubilación más allá de los planes 401(k). Notablemente, el 40% de estos ahorradores de alta contribución había pausado o modificado sus ahorros para la jubilación en algún momento.
Principal Financial Group는 최근 조사에 따르면 은퇴 저축자 중 60%가 어느 시점에서 기여를 줄이거나 중단하거나 인출했다고 밝혔습니다. 이러한 어려움에도 불구하고 50%는 원래의 저축 궤도로 되돌아갈 수 있었습니다. 기여를 일시 중단한 사람들 중 78%가 결국 저축을 재개했습니다.
조사는 저축을 줄이는 주요 이유로 높은 월별 비용, 낮은 소득, 예기치 않은 삶의 사건 및 부채 상환을 포함했습니다. 필수 비용, 주택 계약금 및 실업이 인출의 주요 원인이었습니다. 응답자의 4분의 3은 은퇴 기여를 수정할 때 대안이 없다고 느꼈습니다.
상위 저축자 (연간 소득의 15% 이상 기여하는 사람들) 중 65%가 낮은 기여 저축자의 39%와 비교하여 IRA를 활용했으며, 이는 401(k) 계획을 넘어 은퇴 투자 수단을 다양화하는 경향을 나타냅니다. 특히, 이러한 고기여 저축자의 40%는 이전에 은퇴 저축을 일시 중단하거나 수정한 경험이 있었습니다.
Principal Financial Group révèle que 60% des épargnants pour la retraite ont réduit, arrêté ou retiré des contributions à un moment donné, selon une enquête récente. Malgré ces revers, 50% ont réussi à retrouver leur trajectoire d'épargne initiale. 78% de ceux qui ont mis en pause leurs contributions ont finalement repris l'épargne.
L'enquête a identifié des raisons clés pour la réduction des économies, notamment des dépenses mensuelles élevées, des revenus plus faibles, des événements de vie inattendus et le remboursement de dettes. Les dépenses essentielles, les acomptes pour l'achat d'une maison et la perte d'emploi étaient les principaux moteurs des retraits. Trois quarts des répondants ont estimé qu'ils n'avaient pas d'alternative lorsqu'ils ont modifié leurs contributions à la retraite.
Parmi les meilleurs épargnants (ceux qui contribuent 15 % ou plus de leur revenu annuel), 65 % ont également utilisé des IRA par rapport à 39 % des épargnants à faible contribution, indiquant une tendance à diversifier les véhicules d'investissement pour la retraite au-delà des plans 401(k). Notamment, 40 % de ces épargnants à forte contribution avaient précédemment mis en pause ou modifié leurs économies de retraite à un moment donné.
Principal Financial Group gibt bekannt, dass 60% der Altersvorsorge-Sparer irgendwann ihre Beiträge reduziert, gestoppt oder abgehoben haben, laut einer aktuellen Umfrage. Trotz dieser Rückschläge schafften es 50%, ihren ursprünglichen Sparpfad wieder aufzunehmen. 78% derjenigen, die ihre Beiträge pausierten, nahmen das Sparen schließlich wieder auf.
Die Umfrage identifizierte wichtige Gründe für die Reduzierung der Ersparnisse, darunter hohe monatliche Ausgaben, niedrigere Einkommen, unerwartete Lebensereignisse und Schuldenrückzahlungen. Notwendige Ausgaben, Anzahlungen für Häuser und Arbeitsplatzverlust waren die Hauptgründe für Abhebungen. Drei Viertel der Befragten fühlten, dass sie keine Alternative hatten, als ihre Altersvorsorgebeiträge zu ändern.
Unter den Top-Sparern (die 15% oder mehr ihres Jahreseinkommens beitragen) nutzten 65% auch IRAs im Vergleich zu 39% der Sparer mit niedrigeren Beiträgen, was auf einen Trend zur Diversifizierung der Altersvorsorge-Investitionsvehikel über 401(k)-Pläne hinaus hinweist. Bemerkenswerterweise hatten 40% dieser hochgradigen Sparer zuvor ihre Altersvorsorgebeiträge irgendwann pausiert oder geändert.
- 78% of savers resume contributions after stopping
- 50% of savers recover to original savings trajectory after setbacks
- 65% of top savers diversify with additional IRA investments
- 60% of retirement savers have reduced or stopped contributions
- 75% of contribution changes driven by financial necessity
- Multiple factors forcing withdrawal: essential expenses, housing costs, job loss
“Americans do not follow a singular savings path for retirement, but it is important to highlight that most individuals who reduce, stop, or withdraw contributions make it a priority to restart their contributions and ultimately appear to recover to a similar level after life caused them to take a pivot,” said Chris Littlefield, president of Retirement and Income Solutions at Principal®. “The survey findings reveal a growing need for point-in-time advice and educational resources that help people navigate tough financial decisions and help them reach their retirement goals, even when their path has shifted a bit.”
Three-in-four survey respondents who changed their retirement contributions felt they had no other choice, and the reasons were varied:
- Top reasons for reducing savings included high monthly expenses, lower income, an unexpected life event, and paying off debt.
- The leading reasons for a withdrawal were to pay for an essential expense, cover a downpayment on a house, and loss of job within the household.
The survey also explored the financial habits of top savers – those who are contributing
“This shows me that investors who can save more are realizing their 401(k)s are key investment vehicles – but not their only one. They are exploring the importance of issues like future taxation, including whether they're better off with traditional or Roth accounts, as well as looking for other opportunities to find tax advantages once they've exhausted those in their workplace accounts. I see this as good news, especially since these individuals report higher levels of confidence and resilience to save overall, even though 4-in-10 survey respondents saving
1 Principal® Real Life Retirement Journeys, 2025 Q1 Report
2 Jean Chatzky, a compensated financial commentator, is not affiliated with any company of the Principal Financial Group. The views she expresses are not necessarily those of the Principal Financial Group or any member company.
About the Principal® Real Life Retirement Journeys Survey
The Principal® Real Life Retirement Journeys Survey had responses from 1,000 employees between the ages of 18 and 64, with pre-tax household incomes of
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with nearly 20,000 employees3 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we’re helping approximately 70 million customers3 plan, protect, invest, and retire, while working to support the communities where we do business. Learn more about Principal and our commitment to building a better future at principal.com.
3 As of December 31, 2024
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/-dealers. Principal Global Investors leads global asset management. Referenced companies are members of the Principal Financial Group®,
© 2025 Principal Financial Services, Inc. Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in
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Media Contact: Phillip Nicolino, 515-362-0239, nicolino.phillip@principal.com
Source: Principal Financial Group
FAQ
What percentage of retirement savers have modified their contributions according to Principal's survey?
How many retirement savers successfully recover after stopping contributions?
What are the main reasons people reduce their retirement savings?
What percentage of top savers (15%+ contributors) also use IRAs for retirement?
How many retirement savers felt forced to change their contribution patterns?
