Workers save more for retirement

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Even though the cost of living has increased, workers saving for retirement are still saving – with some even saving more than they ever have, the Associate Press reported.

In a study conducted by Boston-based Fidelity Investments, nearly 16,725 corporate retirement plans indicated that contributions increased in the first half of 2008. It revealed that on average, contributions increased 1.4 percent to $3,187 compared with $3,142 in the first half of 2007.

“There is no doubt that American workers are feeling the pressure from escalating energy and food prices as well as a slumping real estate market, but the majority are making retirement a priority and staying the course,” Scott David, president of retirement services at Fidelity, said in a statement.

Workers are showing even more dedication to saving in employer-offered 401(k) plans; in Fidelity’s survey, such plans showed an increase of 7 percent to $3,512 in the first half of 2008.

However, the study is in complete contrast with Principal Financial Group Inc.’s findings. The Principal Financial Well-Being Index, which was released in May, indicated nearly 3 percent of workers had reduced retirement contributions in response to increased fuel prices.

Principal’s index was an online survey of more than 1,100 workers and 673 retirees, conducted by Harris Interactive.