Most Americans have concerns about their finances but most have done nothing about it, according to new research.
Just 30% of respondents to a survey by Thrivent said they are currently very confident in managing their finances, while more than half fear they may not be able to retire when they want and almost half are concerned about their debts.
However, only 28% said they are currently saving for their retirement and just 36% are planning to prioritize debt reduction, highlighting a troubling gap between financial fears and the actions required to address them.
The firm’s study suggests that the inaction may be driven, at least in some cases, by a lack of confidence, especially among younger Americans. Confidence among poll participants rises from 21% among Gen Zs, to 26% among Millennials, 29% for Gen Xers, and 38% for Baby Boomers.
But many people are not getting professional financial advice, weakening their confidence further. Just 22% of all age groups said they use a professional financial advisor and 42% of Gen Z and 47% of Millennials get financial advice from friends and family, compared with 37% of Gen X and 27% of Baby Boomers who said the same.
Thrivent’s new Financial Fitness Survey also found that women are less likely than men to have a current investment strategy (43% of women don’t vs. 27% of men).
Baby Boomers, who are also more likely to live on a fixed income, are more likely to follow a budget than other generations. Only 32% of Gen Z, 36% of Millennials, and 36% of Gen X regularly create and follow a budget compared with 44% of Baby Boomers.
“Good money management starts with confidence,” said Thrivent financial advisor Sarah Hamlen. “I believe seeking professional financial advice, developing and managing a budget, and taking actionable steps toward retirement planning are fundamental moves anyone can do to meaningfully improve their financial fitness.”
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