New York Life | January 18, 2023
Americans end 2022 on a high note: adults saved $5,011 on average, 54% met or exceeded savings goals.
NEW YORK – While Americans continue to experience the challenges presented by inflation and a potential recession, New York Life’s latest Wealth Watch survey found that 66% of American adults are confident in their ability to reach their financial goals, and 1-in-3 feel hopeful about their finances at the end of 2022 going into 2023, reflecting similar levels of confidence reported this time last year. Still, inflation continues to be a top concern for 68% of adults, followed by a potential recession (36%) and rising interest rates (29%). The new survey also revealed that women and Gen Xers are feeling the crunch more than other groups, reporting having a lower average amount of savings and feeling less financially confident than other demographic cohorts.
“While financial health and confidence for Americans may differ for myriad factors, it’s worth noting that women and Gen Xers, or those within the “Sandwich Generation,” are likely parent-caregivers, handling both parent or guardian and unpaid adult caregiving roles, often leading to greater levels of stress,” said Suzanne Schmitt, Head of Financial Wellness at New York Life. “Of the 53 million Americans serving as caregivers, 61% of them are women, as reported by AARP in 2020, and their financial needs and priorities, including saving, investing, and protection, require a relevant strategy to adequately support those distinct needs. This may include working with a trusted financial professional to understand those priorities, address barriers to equitable financial wellbeing, and to help improve confidence despite market uncertainty.”
“Changes brought about by the pandemic, natural disasters and shifting workplace dynamics – along with ongoing inflation and uncertainty – continue to impact wellbeing and future outlooks. While it’s challenging to predict trends and outcomes, over half of Americans anticipate their living expenses will be higher in 2023 than they were in 2022,” said Schmitt. “Individuals, and their families, are adopting a protection mindset to enable financial resiliency, making thoughtful changes to financial strategies to withstand the current environment and when unexpected events occur.”
“Americans are focused on building a strong financial foundation, which includes paying down high-interest debt and protecting against financial shocks, and we view that as a positive sign,” said Schmitt. “Over 1-in-5 adults report that they’re seeking guidance to help them adapt their financial strategy to achieve their financial health goals in 2023, including: debt management, building emergency savings, and saving for retirement. While many Americans are determined to manage their own finances, with inflation, updated legislative activity, and varying levels of confidence, this may be an opportune time to seek guidance from a trusted financial professional and determine the next best step in their financial health journey. Much like our physical health, there’s no such thing as perfect financial health. Making slow, steady progress is key to establishing and maintaining positive momentum. Coaching and guidance along the way can also play a critical role in course correcting and helping individuals anticipate and plan for common life events, speed bumps, or a welcome change in plans.”
Wealth Watch is a recurring survey from New York Life that will track Americans’ financial goals, progress toward those goals and feelings about their ability to secure their financial futures, identifying key themes and trends that are emerging about topics like retirement planning, the role of protection-oriented solutions and the importance of financial guidance.
This poll was conducted between December 17 and December 20, 2022 among a national sample of 4,410 adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, educational attainment, age, race and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.
New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States1 and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies2.
1Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 5/23/2022. For methodology, please see https://fortune.com/fortune500/.
2Individual independent rating agency commentary as of10/18/2022: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).
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