Half of Americans are saving next to nothing

Half of Americans are saving next to nothing

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NEW YORK (CNNMoney) — When it comes to saving, we aren't doing enough of it.

Roughly half of Americans are saving 5 percent or less of their incomes, including 18 percent that are not saving anything, according to a survey from Bankrate. Only about a quarter of people are saving more than 10 percent of their earnings.

So how much should you be saving? Bankrate recommends 15 percent.

"Between emergency savings and the ever-increasing burden of retirement savings that is on the individual, the goal should be 15 percent of your income," said Greg McBride, the personal finance website's chief financial analyst.

Currently, one in seven people are saving more than 15 percent, the report showed.

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"For a lot of people, it won't happen overnight. It's going to take some time, but it's doable, as the middle class is showing."

Those in the middle class are proving to be the super savers with 35 percent of people with an annual income of $50,000-$74,999 saving more than 10 percent of their earnings.

Of those taking home more than $75,000 a year, 32 percent were saving more than 10 percent of their income, according to McBride.

Saving more is easier said than done, which is why McBride suggests making it automatic by having a portion of each paycheck be directly deposited into a savings account and a retirement plan. "Saving needs to happen before you pick up your paycheck."

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Bankrate's Financial Security Index, which surveyed 1,000 adults in the U.S., also showed consumers are feeling better about their debt and financial situation compared to a year ago, which could actually be bad news for savings accounts.

"People get frugal fatigue, as the economy improves I think a lot of people will fall back into familiar habits ... more spending, more debt, less savings."

The-CNN-Wire ™ & © 2015 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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