Consumers Confident In Longer Physical Life, But Financial Life? Not So Much
07/14/2016 CU today
Americans are happier to be living longer than ever, but 70% feel financially unprepared to live to 100 or beyond, according to a new study. The confidence in financial life is lacking for many.
Money Fears Stopping Many From Pursuing Goals
The Allianz Life study, called The Gift of Time, surveyed 3,000 U.S. adults between the ages of 20 and 70 and discovered respondents believed a longer life would give them the opportunity to reach their dreams and feel more fulfilled. However, money fears and lack of planning are stopping many from taking risks and pursuing these goals, noted Bill Hardekopf, CEO of LowCards.com, Birmingham, Ala.
“While Millennials and Gen Xers have the most time to follow their dreams, a great majority (79% of Gen Xers and 74% of Millennials) feel unprepared for a longer life,” said Hardekopf. “Fifty-seven percent of Baby Boomers also feel financially unprepared.”
When considering the future, 45% of the respondents said they felt “uncertain” about living a longer life, and more than half (51%) feared that not “having enough money to last my whole life” filled them with the most apprehension.
Know They Need Better Spending & Savings Plan
“But most respondents said they knew solutions existed to help them live to 100 happily. Over half (51%) said they knew they needed a better spending and savings plan, while 37% acknowledged they may need to work longer and retire later,” noted Hardekopf.
A possible solution may be to hire help. The study found people feel happier and more comfortable when they work with financial professionals. Seventy-nine percent reported feeling better about major life choices when they worked with someone, while only 64% of those who made the decision on their own felt good about it.
“Unfortunately, the majority of Americans (72%) do not work with financial professionals,” said Hardekopf. Consumer are not confident in financial life knowledge or actions.
Other key findings include:
- To further understand consumer attitudes about living happier lives, respondents were asked to finish this sentence: “Following your dreams is all well and good, but you need to have…” Fifty-seven percent said the top barrier would be having “enough money” and 50% cited “a good financial plan” as the top barriers.
- Respondents were also asked about regrets—52% said they had wished they had saved more money, while 38% wished they had traveled. Thirty-two percent said they regretted not spending more time with their children.
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Mid Oregon Credit Union wants all of our members to be confident in their financial lives. We would love to hear from you and find out how we can help.