Individuals are thinking more critically about how future
events could affect their finances and recognize the need to take action in
creating long-term financial security and protecting against financial
uncertainty, a new survey finds.
According to AIG Life & Retirement’s “Moving Forward”
survey of 1,000 Americans ages 22-76 with household incomes of $40,000 or
higher, most respondents are concerned about future uncertainties, pointing to
health care costs in retirement (80%), inflation (80%), independence in later
life (79%), availability of Social Security (77%) and running out of money in
retirement (74%) as top concerns.
More than half of respondents said long-term financial
planning has become more important (58%) and that they intend to save more
(56%) and pay more attention to how they spend and manage their money (55%).
Survey respondents’ top financial priorities are:
increase or begin saving for retirement (66%);
pay off debt (65%);
start or grow an emergency fund (63%);
financial planning (63%); and
secure protected lifetime income for retirement (60%).
Women Less Likely to Report Improvement
Women were found to be less likely than men to see
improvement in their lives and to have made positive strides financially.
According to the findings, 41% of men say their financial situation has
improved over the past year, but only 26% of women said the same. This gender
gap, according to AIG’s findings, extends across several categories:
Retirement readiness: Only 18% of women report an
improvement versus 41% of men.
Employment income: 24% of women report improvement
versus 39% of men.
Level of assets/savings: 28% of women report
improvement versus 49% of men.
Saving more money: 32% of women report improvement
versus 48% of men.
Women were also less likely than men to say they currently
work with a financial professional or have a plan to do so in the future,
highlighting a need to increase education and outreach programs designed to
engage more women in planning for their futures, the study notes. “Women have
made strides to narrow the gender gap in business, education and politics, but
financial challenges persist,” notes Terri Fiedler, President and CEO of AIG
Financial Distributors. “Our industry must work together to make it possible
for more women to achieve financial and retirement security.”
Generational Differences
The survey also found that Millennials are the most
optimistic generation. Nearly half of Millennial respondents (48%) say their
quality of life is either “better” or “much better” than in the previous year,
compared with 38% of Generation Xers and 22% of Baby Boomers. Similar results
were seen between the generations when asked about their financial well-being
and whether their financial situation has improved. They are more likely to
report improvement in these areas:
Saving more money: 53% for Millennials, 38% for Gen
Xers and 21% for Baby Boomers
Level of assets/savings: 48% for Millennials, 36% Gen
X and 26% Baby Boomers
Employment income: 44% for Millennials, 31% Gen Xers
and 13% Baby Boomers
Non-mortgage debt: 39% for Millennials, 24% Gen Xers
and 12% Baby Boomers
Millennials were also more likely to believe in the
importance of having financial planning goals and have a greater desire to work
closely with their financial professional, if they have one, the study adds.
Regarding steps to improve their long-term financial
security, AIG reports that 9 in 10 respondents (91%) view financial products
that provide income for life in retirement as valuable, with 34% saying they
are “very valuable.”
Additionally, 7 in 10 respondents (70%) say they want to
work with a financial professional in the next year, and 58% of those who
already have a financial professional say they intend to work together more
closely with them moving forward.
Click here for the
original article.