Savings Policy
Lack of access to direct deposit, the complexity of products and insufficient incentives make the risk of saving seem far greater than the reward. NCTC advocacy campaigns focus on providing savings opportunities for all working families.
In recent years, personal savings rates in America have reached
historic lows; 3 out of 10 American workers have not been able to save
a dime toward retirement. From the highest income brackets to the
lowest, one thing is clear—Americans just aren’t saving. But without a
savings cushion to fall back on, families find that emergencies become
crippling catastrophes.
For low-income working families, limited
incomes do not fully explain low saving levels. Lack of access to
direct deposit, the complexity of products and insufficient incentives
make the risk of saving seem far greater than the reward, while tax
incentives to encourage savings leave out many low-income families.
Ironically, those who do not earn enough to qualify are the ones most
in need of emergency savings.
Together, we can give working families the opportunity to invest in a brighter future by:
- Expanding federal matched savings programs to reach all low-wage workers and offering real incentives to save for education and emergencies, as well as for retirement.
- Creating universal savings options to promote direct deposit and access to simple savings products, like U.S. Savings Bonds.
- Improving access to higher education through tax credits that are available to all students, no matter their income level or career focus, so they can realize their college dreams.
