Attitudes Split Among Generations with Younger
Americans More Likely to Say Their Financial Situation is Getting
Better
MADISON, Wis.,
Aug. 15,
2024 /PRNewswire/ -- Middle-market Americans feel
positive about their personal finances and are optimistic about the
future, with a vast majority (92%) reporting they can cover their
monthly expenses and more than half (55%) putting at least some
money towards savings. Additionally, 71% of middle-market Americans
report their financial situation is good, and another 37% say it
improving. The number reporting their financial situation is
improving jumps to 61% for Gen Z Americans and 49% for Millennials
but drops to 33% for Gen X and 26% for Boomers.
This is according to the latest research from TruStage, an
insurance, investment and technology provider that has protected 37
million consumers across the United
States. While the research, titled the TruStage 2024
Middle Market Survey, found several causes for optimism, it
also unearthed some concerning trends regarding financial
preparedness, outlooks on the U.S. economy and savings levels.
"The middle market has been historically underserved by the
financial services industry. At TruStage, we are focused on better
understanding their needs, challenges and expectations. Part of
this means ensuring they have access to the information, tools and
solutions to feel confident in their financial decisions and are
prepared for the unexpected," commented Terrance Williams, CEO of TruStage.
Key findings from the survey include:
- Many middle-market Americans are on track for retirement
savings but still, 43% of those not yet retired do not feel
prepared for retirement. Most (85%) survey respondents
reported having at least $10,000 in
retirement funds per household, and exactly half reported having at
least $100,000 per household.
- Despite this, the survey shows a concerning trend in retirement
preparedness – especially for women, where exactly half of those
not yet retired do not feel prepared for retirement. This
represents a tremendous opportunity for financial services
companies to support these individuals by providing education and
resources to build confidence in their retirement plans.
- Nearly two-thirds (61%) of middle-market Americans feel the
economy is on the wrong track. Respondents are most
concerned about rising inflation (87%), higher taxes (84%) and the
upcoming Presidential election (81%). Despite these concerns, only
38% have taken steps to prepare for higher inflation. Another 30%
have taken steps to prepare for a possible recession and 29% for
higher taxes.
- These financial concerns are having a negative impact on the
savings of middle-market Americans. More than half of
respondents report saving less because of rising inflation (59%)
and higher taxes (51%.) In addition, three-in-four Americans
have debt and 42% have at least $10,000 in debt (i.e. student loans, credit card
debt, medical debt, etc., excludes mortgages) according to the
survey. Further, three-in-five middle market Americans today (58%)
would need to dip into savings to pay an unexpected $1,000 expense and nearly one-third (28%) would
need to put that amount on one or more credit cards.
Accessibility in Financial Services Makes Strides, but
Negative Price Perceptions Remain
The survey also delved into the lack of support many
middle-market Americans feel in terms of working with financial
advisors and other financial professionals. Just under half (46%)
report that they've met at least once with a financial advisor.
This number drops to 44% for African Americans, 43% for women, and
41% for Millennials.
There is a perception of high costs associated with financial
advisors – with one-third of respondents who haven't met with a
financial advisor citing their belief that advisors are too
expensive as the reason. This number jumps to 38% for women.
Insurance (home, health, auto, life, etc.) was ranked the most
accessible financial product, followed by investment accounts, with
92% and 78% finding these services accessible. Compared to the
other financial services polled, only 72% of respondents believe
financial advisors are accessible.
"The fact that more than half of the middle market still have
not seen a financial advisor points to a broader challenge that our
industry must rise to. Our survey shows that people believe
insurance products are accessible, but the perceptions of cost
related to financial advisors remain a barrier. We need to directly
address these misconceptions to ensure every American feels they
have access to guidance and resources that help them confidently
make financial decisions," added Williams.
The survey, which sampled 1,500 American adults with a household
income between $50,000-$150,000, focused on the middle market and their
perceptions of the U.S. economy, as well as their own financial
habits and plans for the future.
About TruStage
TruStage is a financially strong insurance, investment and
technology provider, built on the philosophy of people helping
people. We believe a brighter financial future should be accessible
to everyone, and our products and solutions help people confidently
make financial decisions that work for them at every stage of life.
With a culture rooted and focused on creating a more equitable
society and financial system, we are deeply committed to giving
back to our communities to improve the lives of those we serve. For
more information, visit www.trustage.com.
TruStage™ is the marketing name for TruStage Financial
Group, Inc. its subsidiaries and affiliates. Corporate headquarters
are located in Madison, Wis.
CORP-6870659.1-0824-0926
www.trustage.com
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SOURCE TruStage