Despite a sluggish economy, more Americans say they are confident their personal finances will improve during the next 12 months. This trend is translating into more people saving for retirement, according to new research from The Hartford.

“Americans are known for their optimism and that is being reflected in their increasing participation in retirement plans, even as the economy continues to struggle,” said E. Thomas Foster Jr., vice president for The Hartford’s Retirement Plans Group. “More people say they are saving for retirement and focusing on reaching their retirement savings goals. It’s a promising time for employers and financial advisors to promote the importance of retirement savings.”

The Hartford found that participation in 401(k)s and other defined contribution retirement plans by employed adults rose to 76 percent overall in 2011, up from 71 percent from a year ago and up 63 percent from two years ago. Three demographic sub groups of respondents showed the biggest gains:

- Participation by boomers – those closest to retirement – rose to 79 percent, up from 71 percent in 2010 and from 63 percent in 2009;

- 77 percent of Gen Xers or those ages 32-46 contributed to their employer’s retirement plan in 2011, an increase from 71 percent in 2010 and from 67 percent in 2009; and

- Participation by men jumped to 81 percent, up from 71 percent last year and from 66 percent two years ago.

The only disappointment in the findings was that participation by younger employees ages 19-31 showed a slight decline and participation among women overall was flat. Seven in 10 women contributed to their employer’s retirement plan, unchanged from the previous year when women showed greater improvement than men. Participation in retirement plans amongst Gen Y declined by 2 percent.

Overall, most Americans were surprisingly optimistic about their financial future. When asked about the next 12 months, 34 percent of study respondents said they were “extremely” or “very confident” that their lives would improve. Those expressing optimism cited expected improvements in their personal finances:

- 53 percent said reducing debt and increasing savings were part of their financial goals;

- 52 percent indicated they were “extremely” or “very” confident their personal finances would continue to improve; and

- 42 percent said securing their financial future was their primary goal.

The Hartford’s research also discovered that Americans are feeling better about their lifestyles as well. More people (26 percent) said they “live comfortably” in 2011, an increase from 19 percent in 2010. Nearly half of all respondents (48 percent) said they “meet my expenses with a little left over for extras.”

“As Americans feel better about their personal finances, they are looking to the future, particularly as it relates to planning for retirement,” Foster said.