A Majority of Americans Report a Financial Bright Spot Despite Declining Financial Confidence, According to New Findings from New York Life Wealth Watch Survey
Adults Turn to Savings to Cope with Rising Costs, Report Spending Nearly
As inflation remains elevated and the cost of everyday goods continues to rise, New York Life’s
“The financial picture for many Americans has changed significantly since the start of the year, and we’re seeing the positive expectations many Americans held about their finances heading into 2022 start to fade,” said
Americans continue to prioritize short-term financial goals
At the midpoint of the year, top financial concerns have shifted from long-range priorities to nearer-term ones – a change from just a few months ago, when a majority (65%) of those surveyed were prioritizing their long-term financial goals. Americans now report that their current concerns are paying for daily expenses like groceries and gas (39%), monthly bills (36%), and personal financial emergencies (24%). Respondents also reported drawing an average
- The top financial goals on which respondents made continued progress this month include developing and maintaining a financial budget (54%), evening out spending month to month (46%), and eliminating debt (44%).
- To cut back on spending, nearly half (45%) of Americans are reducing dining out and ordering from restaurants, reducing travel and vacations (39%), and reducing event attendance (37%).
- Nearly half (47%) of adults said they have made some progress recently on saving for retirement, but 32% say they have made no progress on this financial goal.
“Americans are certainly factoring the economic environment into their short-term financial strategies by cutting back on discretionary spending. Fortunately, we are still seeing many adults maintain current financial habits over the last couple of months, including investing in the stock market (30%) and spending on home renovations (25%),” continued Ball.
Sentiments and priorities differ by demographic
- Younger generations are less confident today than they were six months ago that they will be able to retire at their desired age (Gen Zers: 64% vs. 75%; Millennials: 62% vs. 74%).
- The ability to afford a home is a top financial concern for Gen Zers (22%) and Millennials (21%).
- Mental health is a concern for 36% of Gen Zers and 32% of Millennials, vs. 23% of all adults.
- Gen Zers (82%), Millennials (67%), and men (70%) are more likely to be confident that their retirement savings will last the rest of their life, compared to other demographic groups.
- Baby Boomers (66%) and men (68%) are more confident in their ability to meet their financial goals compared to other demographics.
- 58% of parents sought financial advice in the past month compared to 42% of non-parents.
Despite declining confidence, finances remain relatively strong and most people have reported a recent financial bright spot
- More than half (59%) of adults have experienced recent financial bright spots, including paying off debt (19%), going on or booking a vacation (18%), and contributing to savings or emergency funds (17%).
- Though confidence has declined since January, a majority (64%) of adults expect their retirement savings to last their whole lives.
“Members of all generations are facing difficult financial headwinds and, as a result, we’re seeing an increased interest in financial guidance – especially among Gen Zers and Millennials. In fact, more than half of respondents in these groups (65% of Gen Zers and 56% of Millennials) have utilized financial advice in the last month,” said Ball. “Regardless of the economic environment, the partnership of a trusted financial professional is critical to ensuring short- and long-term financial goals can be achieved.”
ABOUT WEALTH WATCH
Wealth Watch is a recurring survey from
SURVEY METHODOLOGY
This poll was conducted
ABOUT
New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in
1 Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),”
2 Individual independent rating agency commentary as of 6/22/2022:
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