MINNEAPOLIS–In another indicator of how many consumers and members are looking for guidance, many Americans are saying they are finding making responsible financial choices has become “increasingly elusive,” according to a new survey.
The survey, from U.S. Bank, found Americans saying they are making smart, responsible choices such as budgeting, investing, cutting back on spending, but the goals most people care about, including buying a home, retiring comfortably, and building wealth – depend on economic forces “beyond their control.”
Topline Findings
According to the survey of 5,000 adults:
- 68% say they are budgeting
- 64% say they are reducing leisure spending
- 57% said they have financial plans (57%).
But on the flip side:
- 81% say it’s harder to retire now than it was for their parents (87% Millennials; 84% Gen Z and Gen X; 68% Boomers)
- 77% said the current economic environment influences their retirement timeline (86% Gen Z and Millennials; 79% Gen X; 55% Boomers)
- 77% said the economy influences where to live, including more affordable parts of the country or tax-friendly states (90% Gen Z; 84% Millennials; 76% Gen X; 61% Boomers)
- 75% said the economy influences whether they buy or rent a home (91% Gen Z; 84% Millennials; 72% Gen X; 51% Boomers)
- 63% say they are worried they will have to come out of retirement due to economic factors (77% Millennials; 74% Gen Z; 69% Gen X; 39% Boomers)
‘Seismic Shift’
“This year’s survey reveals a seismic shift in the American dream,” Scott Ford, head of Wealth Management at U.S. Bank, said in a statement. “Although many survey respondents are making prudent choices, they are disheartened and wonder if their efforts are worth the sacrifice. The good news is that even small steps can help you take control of your financial health, including having a financial plan and investing what you can, even if it’s a small amount.”
Additional Findings
The survey also found:
- 93% of Americans say meaningful family and community relationships are important. Younger generations are more likely to strongly agree: 55% Gen Z, 49% Millennial, 40% Gen X, 39% Boomer.
- 88% of Americans say owning a home is a key measure of financial success, with 60% of Gen Z saying it has become more important in the last five years.
- 93% say having enough retirement savings to live comfortably is a key indicator of success (96% Boomer; 93% Gen X, 92% Gen Z and Millennials)
- 16% of Americans say they’ve given up on retiring due to financial reasons. (23% among Gen X)
- Just 48% are making monthly contributions to their retirement funds. (44% of women vs. 53% of men; 54% Millennials; 53% Gen X; 44% Gen Z; 39% Boomers.)
- Just 37% of non-retired Americans are actively planning and saving for retirement (29% Gen Z, 38% Millennials, 39% Gen X, 51% Boomers).
- Women are less likely than men to have started thinking about, planning or saving for retirement (54% of women vs. 67% of men).
- 68% of Gen Z and 69% of Millennials worry they will outlive their retirement savings (vs. 64% of Gen X and 49% of Boomers.)
- Women consistently report less confidence than men that their savings will be enough to last throughout their retirement (49% of women vs. 66% of men).
