Americans Are Scared Savers, Survey Shows : Consumers: Baby boomers are getting much thriftier. Many fear having to pay for a parent's care and a child's education at the same time.

Americans Are Scared Savers, Survey Shows : Consumers: Baby boomers are getting much thriftier. Many fear having to pay for a parent’s care and a child’s education at the same time.

By KATHY M. KRISTOF

June 14, 1990 12 AM PT

TIMES STAFF WRITER

Americans--particularly aging baby boomers--are increasingly pessimistic about their financial prospects and, consequently, are beginning to save more than ever before, according to a survey by the International Assn. for Financial Planning in Atlanta.

“Pessimism is causing everybody to put away more money,” said Robert A. Hewitt, chairman of the financial planners’ trade group. “We, as a nation, are coming to grips with the fact that we can’t spend more than we make.”

The U.S. savings rate proves that the respondents aren’t just talking, Hewitt added. Savings as a percentage of disposable personal income has risen from 3.2% in 1987 to 5.4% in the first quarter of 1990, according to the Commerce Department’s Bureau of Economic Analysis.

A variety of factors have weighed in to worry the vast majority of the 1,758 individuals surveyed about their ability to cope with future financial responsibilities, according to the IAFP.

Older baby boomers, those between the ages of 35 and 44, believe that they are in a “triple squeeze”--likely to have to pay for a child’s education, support an aging parent and save for their own retirement at the same time. An astounding 75% of this group say they are currently saving or planning to save more in 1990 because of these concerns.

On average, 62% of the general population responded they were planning to save more this year than last.

But Americans are also worried about mundane, day-to-day expenses, such as making car and mortgage payments, paying taxes and buying insurance. The cost of child care has also emerged as a concern, with 4% of the population citing it as a worry, compared to less than 0.5% in 1989.

Only 8% of those surveyed in 1990 said they had no real financial worries, compared to 6% in 1989 and 15% in 1988.

The Gallup Organization conducted the survey with a random telephone sample of 1,058 households. It also called 600 additional families with incomes above $50,000 to determine the concerns of affluent Americans. The margin of error was given as plus or minus 3%.

The biggest long-term worry for both the general population and aging baby boomers--the most concerned and pessimistic group surveyed--is the possibility of having to cope with two major expenses, namely a parent’s care and a child’s education at the same time. Two-thirds of the baby boomers and 53% of the general population cited this as one of their topmost concerns.

More than half of the respondents were also worried about outliving their retirement savings--52% of the total population, compared to 62% of the baby boomers. Moreover, 46% of the general population and 59% of the baby boomers said they were “very or somewhat concerned about meeting all their financial responsibilities.”

Other survey results:

* 86% of those surveyed believe that college costs have risen beyond the means of most American families.

* 86% believe that severe inflation is likely to be a problem in the 1990s.

* 83% said the cost of day care has become a serious financial burden for most families with small children.

* 66% believe that there is less chance for retirees to be financially self-sufficient in the 1990s than in the 1980s.

Women are more pessimistic than men, with 91% of the women surveyed saying college will probably cost too much for most American families in the 1990s. Only 81% of the men agreed.

SAVING MORE

Gallup surveyed 1,058 households nationwide. An additional 600 households with incomes of $50,000 or more were surveyed to determine results for the “wealthy” category. Here is how they responded to the question, “What are your top two or three long-term financial goals?”

Saving for retirement

General population

1990: %30

1989: %28

Wealthy

1990: %52

1989: %41

Saving for a child’s education

General population

1990: %17

1989: %14

Wealthy