Studies: Most Americans see need for improving financial wellness

When looking back on 2022, 88% of Americans see room for improvement in their overall financial wellness and 71% say they are likely to set financial goals this year, according to the Lincoln Financial Group’s Consumer Sentiment Tracker.

The study also found that consumers are seeking stability and preparedness in today’s uncertain economic environment.

With ongoing inflation and market volatility, 56% of respondents cited protection from risk as being the most important to them. When it comes to thinking about their finances, consumers have the greatest interest in protecting their families (39%), followed by protecting their income (26%).

“Our research reinforced the importance of financial solutions that can help consumers navigate through market cycles and protect their loved ones,” said David Berkowitz, president, Lincoln Financial Network, Lincoln Financial’s wealth management business.

“People are not only concerned about having enough to pay their bills, but also saving for retirement and preparing for the unexpected. It’s important to have a well-rounded financial plan that can address those risks, protect assets and create positive outcomes for today’s families.”

Americans to focus on the long term

A survey by Voya Financial highlighted additional plans and goals for consumers this year. Because of inflation, the survey said, more than three-quarters (76%) of individuals are extremely likely or likely to spend less on non-essential items this year. These items generally could include things like meals out, vacations or luxury goods.

At the same time, consumers are maintaining a focus on the long-term benefits of saving, with nearly 7 in 10 (68%) of Americans saying they have plans to save for retirement this year.

This focus on preparing for the long term becomes even more important as individuals continue to want to “stay the course” despite today’s market uncertainty. For example, the survey revealed that a majority (81%) of Americans find having a long-term view for their investments important or extremely important, with 79% agreeing on the importance of staying the course during a volatile market.

“It’s extremely encouraging to see individuals keeping a focus on their long-term goals, despite the rollercoaster of financial extremes many have experienced over the past several years,” said Heather Lavallee, CEO, Wealth Solutions, and president and CEO elect of Voya Financial.

“All employers should take note of the steadfastness that working Americans are expressing when it comes to the value of building their retirement savings through their workplace plan. This is particularly important as our survey also found that 75% of individuals plan to follow a financial plan and budget in 2023.”

Additional benefits valued by workers

While a retirement plan remains an important aspect of the overall workplace benefits and savings package, Voya’s survey reinforced the valuable role that workplace benefits are playing in the lives of working Americans, particularly when it comes to both their health and wealth needs.

More than half (52%) of employed individuals said they are more likely to stay with their current employers if they offer benefits like:

• Physical health benefits/programs such as gym reimbursement/discounts, points/bonuses earned based on physical activity, weight loss challenges, etc.
• Financial-wellness benefits/programs, such as access to tools and resources for budgeting, building savings, reducing debt, etc., and a workplace emergency-savings plan (51%).

In addition, nearly half (49%) of respondents are more likely to stay with their current employers if they offer access to voluntary-benefit offerings like critical illness, hospital indemnity, disability income insurance, accident insurance, etc.

“More and more employers today are being proactive with their offerings as they understand the short-term financial needs of their workforce can have a direct impact on their ability to save for the long term,” added Lavallee.

“Programs that provide student loan debt support, caregiver needs, building emergency savings and access to financial professionals or advice tools are all things to ask about when it comes to support the breadth of financial-planning needs individuals face today.”

The goal of Lincoln Financial’s Consumer Sentiment Tracker 2022 Methodology is to gauge consumer sentiment on a variety of financial topics. Data were collected in March, April, May, June, July, September, October, and November of 2022, using the Qualtrics survey platform. Responses were collected from a total of 1,000+ U.S. adults each month.

All data from the Voya survey are based on the results of a Voya Financial survey conducted Oct. 10-11, 2022, on the Ipsos eNation omnibus online platform among 1,004 adults (461 employed) aged 18+ in the U.S.

 

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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