American workers list home buying, credit card debt, and caregiving among the top issues impacting their finances, finds the latest research from Edelman Financial Engines (EFE).
Specifically, half of homeowners under age 50 say they feel trapped in their current home, with many adding that higher interest rates have made home buying and moving tougher for them, according to Edelman’s “2024 Everyday Wealth in America” report. Forty-one percent of Americans and 56% of those in their 30s say they would be willing to move to another state if it meant saving on house expenses. Another 25% say they can’t live in the desirable area due to the state of their finances, and 21% believe they can’t afford to buy the house they want.
Others cite fears of further inflation and market volatility, especially in an election year. When asked about their top three concerns, 86% list the current political environment, 86% say inflation, and 82% credit global conflicts and crisis for their financial worries.
Americans are also feeling squeezed by dual family financial strains. According to the findings, 20% of Americans are actively engaged in caregiving for parents or adult family members, and 37% say they are experiencing financial strain as a result. Furthermore, almost half (42%) are providing support to their adult children.
“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. 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,” noted Amin Dabit, SVP, Head of Wealth Planning at Edelman Financial Engines. “Through this research, we’re learning more about how these different factors all come together to impact the way Americans perceive and achieve their wealth. The insights we gain allow us to better help our clients plan and work toward their financial goals.”
Future retirees are also envisioning a new idea for of retirement, Edelman finds in its research. More are hoping for active golden years and expect to afford that lifestyle, with 42% wanting more activity in their retirement, 39% are looking for adventure, and 37% want to pursue passion projects.
The new vision requires additional planning on their end, Edelman adds. While two-thirds (65%) are at least somewhat confident they’ll be able to afford retirement, nearly one-third (32%) fear that they’ll never be able to “fully” retire.
As a result, more will have to turn to financial advisors to support their retirement planning goals. According to the research, 74% of those who work with an advisor say they stress less about their money issues. For those who do not receive professional help, having support with retirement income planning (38%) and building a broader financial plan (34%) are top areas of interest.
“Whether it’s buying a home, managing family responsibilities, worrying about the current political landscape, or dreaming of a distant retirement, many important money decisions we face are not just financial choices – they’re deeply personal life choices,” added Dabit. “This research reinforces how a financial professional can support you through this complex and daunting process, helping to address the big issues today while planning for tomorrow’s goals.”
Edelman’s study featured 3,008 Americans who were at least 30 years old. The total sample included an oversample of 1,500 “affluent” respondents between the ages of 45-70, with household assets between $500,000 to three million, and currently working with a financial professional or open to doing so.
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.