Adults are turning to savings to meet rising costs and report spending almost
As inflation remains high and the cost of everyday goods continues to rise, New York Life
“The financial situation of many Americans has changed significantly since the start of the year, and we see that many Americans’ positive expectations about their finances heading into 2022 are beginning to fade,” said
Americans continue to prioritize short-term financial goals
By mid-year, top financial concerns shifted from long-term to shorter-term priorities – a change from just a few months ago, when a majority (65%) of respondents gave priority to their long-term financial goals. . Americans now report that their current concerns are paying for everyday expenses like groceries and gas (39%), monthly bills (36%) and personal financial emergencies (24%). Respondents also reported getting an average
The top financial goals that respondents made steady progress on this month include developing and maintaining a financial budget (54%), harmonizing monthly expenses (46%), and eliminating debt (44%).
To reduce spending, nearly half (45%) of Americans are reducing dining out and ordering from restaurants, travel and vacations (39%), and attendance at events (37%).
Nearly half (47%) of adults said they had made progress recently on saving for retirement, but 32% said they had made no progress on this financial goal.
“Americans are certainly factoring the economic environment into their short-term financial strategies by reducing discretionary spending. Fortunately, we still see many adults maintaining their current financial habits over the past two months, including investing in the stock market (30%) and renovating their homes (25%),” Ball continued.
Feelings and priorities differ across demographic groups
Younger generations are less confident today than they were six months ago about their ability 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 Z (22%) and Millennials (21%).
Mental health is a concern for 36% of Gen Zers and 32% of Millennials, compared to 23% of all adults.
Gen Z (82%), Millennials (67%) and men (70%) are more likely to be confident that their retirement savings will last the rest of their lives, compared to other demographic groups.
Baby boomers (66%) and men (68%) are more confident in their ability to achieve their financial goals compared to other demographic groups.
58% of parents have sought financial advice in the past month, compared to 42% of non-parents.
Despite the decline in confidence, finances remain relatively strong and most people have reported a recent financial bright spot
More than half (59%) of adults have recently experienced positive financial times, including paying off debt (19%), going away or booking a vacation (18%) and contributing to savings or emergency funds (17%).
Although confidence has declined since January, a majority (64%) of adults expect their retirement savings to last their lifetime.
“Members of all generations are facing difficult financial challenges and as a result we are seeing increased interest in financial advice, particularly among Gen Z and Millennials. In fact, more than half of respondents from these groups (65% of Gen Z and 56% of Millennials) used financial advice in the past month,” Ball said. “Regardless of the economic environment, the partnership of a trusted finance professional is essential to ensure the achievement of short- and long-term financial goals.”
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Wealth Watch is a recurring survey by
This survey was conducted
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 earnings as reported by “Fortune 500 Ranked Industries, Insurance: Life, Health (Mutual)”,
2 Individual comment from an independent rating agency as of 06/22/2022:
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New York Life Insurance Company
Source: New York Life Insurance Company