By Sarah O'Brien -
CNBC
For super savers in retirement, good financial habits go far beyond fattening up their savings, according to a new study.
Most of these workers—whose 401(k) plan contributions are at least 15% of their salary or 90% or more of the maximum allowed—also pay their bills on time (87%) and don't overuse. of your checking account (74%), according to the Principal's 2022 Super Saver Survey.
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The report, which comes amid runaway inflation, rising interest rates and rumors of an economic recession, was based on a recent survey of 1,120 people ages 18 to 57 with incomes ranging from less than $35,000 to more than 500,000 dollars.
All respondents fit the definition of a super saver in the Principal's 2022 Super Saver Survey.
Although the idea of becoming a super saver may seem daunting, experts say that small changes in habits and lifestyle can go a long way in helping workers increase their contributions.
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“I tell people that good money habits aren't too far from good eating habits,” said Kathryn Hauer, a certified financial planner with Wilson David Investment Advisors in Aiken, South Carolina.
"You stay slimmer when you think about every morsel of food you put in your mouth, and you build the greatest wealth by scrutinizing every penny you part with," Hauer explained.
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Super Savers Drive Old Cars and Avoid Market Worries
Principal's 2022 Super Saver Survey asked respondents what “sacrifices” they have made to save for retirement.
For example, 49% drive an old car, 40% do not travel as much as they would like, and 39% say they have a modest home.
They have also taken steps to change their mindset about money.
Many (69%) also don't care about "keeping up with the Joneses," so to speak, and more than half don't lose any sleep over their finances (56%).
Stock market volatility hasn't scared supersavers, either: Nearly three-quarters of them see the current market environment as a buying opportunity, where they can buy stocks at a discount.
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This view comes amid a double-digit decline in major indices this year.
Through Wednesday's close, the S&P 500 was down 17.2%, the Dow Jones Industrial Average was down 14.4% and the tech-heavy Nasdaq Composite was down 25%.
Small changes in habits can boost savings
While some households have little or no wiggle room in their budget to save more for retirement, others just need to adjust their spending to free up more money for long-term savings.
Hauer said that people tend to spend more money when they are in "a heightened emotional moment," which can prompt decisions that might not otherwise be made.
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“It can be in a boutique shopping for the perfect dress for your daughter's prom or at the car dealership when you get carried away by the cool extra features [of a car],” Hauer explained.
If building retirement savings on a regular basis is difficult with your current budget, try saving extra money that comes your way from time to time, like a birthday gift or part of your tax refund.
"Put the unexpected or surprise money in a retirement account," advises Hauer.
In 2022, workers can accumulate a maximum of $20,500 in their 401(k) account, and those over 50 can receive an additional $6,500 in so-called catch-up contributions (up to a total of $27,000).
For individual retirement accounts, the contribution limit in 2022 is $6,000 (with an additional $1,000 as a catch-up amount).