Individuals who participate in company stock plans are increasingly earmarking the assets for investment or retirement instead of paying off debt – a shift that offers some hope that segments of the population are starting to be able to refocus on saving rather than just paying off bills, Fidelity Investments said today.
The Boston-based investment company found that more than half (57 percent) of company stock plan assets are being allocated for eventual investment or retirement savings after participants sell them. Just 13 percent are targeted for paying bills or debt in the future. In past years, about a third of assets were allocated for bill payment, and only a quarter targeted for savings and investment, Fidelity said.
Earlier this week a study by the Federal Deposit Insurance Corp. (FDIC) showed that the number of American households opting out of the banking system grew steadily from 2009 to 2011.
About 17 million adults don’t have a checking or savings account at all, representing about 8.2 percent of U.S. households. Another 51 million are so-called “underbanked” adults, which means they have a bank account but may also consistently frequent higher-risk services such as pawnshops and payday lenders. The FDIC said it partnered with the U.S. Census Bureau to conduct the survey in June 2011, collecting responses from almost 45,000 households.
The purpose of the report was to assess the inclusiveness of the banking system since, as the FDIC said, “public confidence in the banking system derives in part from how effectively banks serve the needs of the nation’s diverse population.”