Just over half of Americans would rather add a million dollars to their nest egg than live longer, according to the latest research from Edelman Financial Engines.
The latest edition of the firm's 2024 Everyday Wealth in America study, which highlights a growing focus on financial concerns of retirees and Americans at large, found 51 percent would rather get an extra $1 million in retirement savings than have five healthy years added to their lifespans. Another 58 percent agreed they'd need at least $100,000 in annual income to live financially worry-free, including 25 percent who believed it would take more than $200,000.
“In our third year of conducting this research, we’re once again noticing that many Americans – even the affluent – aren’t feeling overly confident about the state of their finances,” Amin Dabit, head of wealth planning at Edelman Financial Engines, said in a statement. “Part of these worries stem from external pressures, like inflation or a turbulent election environment, while some are individual pressures, such as family responsibilities and mounting credit card debt.”
The study revealed significant concerns among retirees, with 37 percent indicating they want a more active and adventurous retirement compared to previous generations. However, while two-thirds of respondents felt somewhat confident about affording retirement, nearly one-third (32 percent) feared they may never be able to fully retire.
The report found retirees are rethinking their priorities for life after work, with many hoping for "more activity" (42 percent) and "adventure" (39 percent) as they plan their futures. These desires reflect broader financial planning challenges that may require reconsideration of retirement strategies.
The financial strain isn't limited to retirees. Credit card debt continues to be a significant obstacle for many Americans, as 44 percent of poll participants identified credit card debt as their biggest hurdle to building wealth, with nearly half (49 percent) reporting they carry month-to-month debt. This represents an increase from last year’s findings, where 39 percent of respondents reported debt as a concern.
Other key financial challenges highlighted include the housing market and caregiving responsibilities. Almost half (49 percent) of homeowners under 50 years old said rising interest rates have trapped them in their current homes, making it difficult to buy or move. Meanwhile, caregiving is placing additional pressure on families, with 37 percent of respondents reporting increased financial strain due to these responsibilities.
Faced with these challenges, more Americans are turning to financial planners for guidance, with 74 percent of those working with a professional reporting less stress about money issues. Retirement income planning and comprehensive financial plans were the top areas of interest for those considering professional help.
Consolidation continues in US wealth management industry.
Tech company democratizes access to US trading infrastructure.
RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.
Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.
The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
