Positive financial changes are among the top resolutions Americans are making for 2024.
A new survey by Allianz Life found that close to half (48%) of all respondents say they are likely to make and keep a resolution to manage their money better or save more in the new year—up from 43% in 2022 and 33% in 2021.
Millennials are the most likely of all age groups to want to manage their money better or save more in 2024, with 59% adding money management to their resolutions compared to 39% of Generation Xers and 30% of Baby Boomers. Other savings strategies respondents are using in the coming year include building an emergency fund (17%), paying down credit cards (16%), and increasing retirement savings (17%).
For Millennials, the top savings strategy was creating a budget (20%), while Gen Xers said they would like to pay down credit card debt (24%).
The rise in savings-related resolutions could be related to the fact that more Americans were financially stressed in 2023 that in years prior, thanks to rising inflation and challenging economic environments. In the past year, 40% of respondents said they were financially stressed, up from 34% in 2022, found Allianz Life. Gen Xers were most likely to say they felt financially stressed in 2023 (46%), compared to 39% of Millennials and 33% of Boomers.
When asked what their top stressors were, day-to-day costs was the leading factor (61%), followed by a low income or retirement income (44%), and high debt (34%).
Another ongoing stressor heading into 2024 is the rising cost of living and inflation. While inflation is set to decrease in the new year, respondents aren’t optimistic much will change with day-to-day costs, while others are concerned about the impact to their long-term savings. Sixty-nine percent of respondents said they’re concerned that high living costs will impact their ability to save for retirement.
“For long-term financial stability, Americans need to have a plan to mitigate the effects of rising cost of living,” said Kelly LaVigne, vice president of Consumer Insights at Allianz Life, in a statement. “While inflation has slowed from recent highs, inflation isn’t going away. You need to protect yourself from inflation risk long-term.”
Adding to respondents’ list of stressors is student loan debt, which many respondents believe will continue in 2024 as more attempt to pay off as much debt as possible while juggling competing priorities. According to the Allianz Life data, 82% say restarting student loan payments will make it tougher to get by, while 66% said they will have to reduce retirement contributions in order to make their monthly student loan payments.
‘Peak 65’ coming in 2024
More Americans will reach retirement-age in the new year, as the U.S. will see 12,000 Baby Boomers turning 65-years-old every day.
As a result, 22% of workers in the Allianz Life survey say they are likely to retire in 2024, compared to 17% in 2022. For Boomers who are currently employed, 31% said they will retire in the coming year, up from 25% just two years ago.
SEE ALSO:
- How Different Demographics Tackle Retirement Readiness
- Higher 401(k) Contribution Limits Could Impact 2024 Retirement Planning
- With ‘Peak 65’ Nearing, More Advisors Consider Annuities
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
