According to the just-released AIG Life & Retirement survey, Americans’ top financial priority right now is to increase or begin saving for retirement.
This was cited by two-thirds (66%) of respondents to the survey, and barely topped “pay off debt,” which was cited by 65% of those surveyed. Starting or growing an emergency fund was another top priority, cited by 63%, as was the more generic “financial planning.”
The new study, Americans Moving Forward, shows individuals are thinking more critically about how future events could impact their finances. Over half of survey 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%).
Many remain concerned about future uncertainties, pointing to healthcare costs in retirement (80%), independence in later life (80%), availability of Social Security (77%) and running out of money in retirement (74%).
Over nine in 10 (91%) view financial products that provide income for life in retirement as valuable, with 34% saying they are very valuable. There is also strong interest in life insurance, with 43% saying it has become more important to get or increase life insurance.
Importantly, more than two-thirds of 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.
“Having a financial professional at your side is essential to building a secure and bright future,” said Terri Fiedler, President and CEO, AIG Financial Distributors. “We are proud to work with so many financial professionals who help make it possible for more people to achieve financial and retirement security.”
The AIG Life & Retirement Americans Moving Forward survey was completed by Greenwald Research in July 2021 and included 1,003 respondents.
Women less likely to report financial improvement
The study also found that while 41% of men say their financial situation has improved over the previous year, the same holds true for only 26% of women. This gender gap extends across several categories:
- Retirement readiness: Only 18% of women report an improvement, compared to 41% of men
- Household employment income: 24% of women report improvement, 39% of men
- Level of assets/savings: 28% of women report improvement, 49% of men
- Ability to save: 32% of women report improvement, 48% of men
“Women have made strides to narrow the gender gap in business, education and politics, but financial challenges persist,” said Fiedler. “Our industry must work together to make it possible for more women to achieve financial and retirement security.”
Millennials emerge as most optimistic generation
The study finds Millennials to be the generation that has found the most optimism. Nearly half of Millennials (48%) say their quality of life is better or much better over the previous year, compared to 38% of Generation X and 22% of Baby Boomers.
When asked about their financial well-being, 42% of Millennials say their financial situation is better or much better, compared to 35% of Gen X and only 18% of Boomers.
They are also more likely to report improvement in the following areas:
- Ability to save: 53% for Millennials, 38% for Gen X, 21% for Boomers
- Career: 50% for Millennials, 36% for Gen X, 10% for Boomers
- Level of assets/savings: 48% Millennials, 36% Gen X, 26% Boomers
- Household employment income: 44% Millennials, 31% Gen X, 13% Boomers
- Non-mortgage debt: 39% Millennials, 24% Gen X, 12% Boomers
More information on the study Americans Moving Forward can be found at aig.com/movingforward.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
