In news sure to increase calls for emergency accounts, Americans are drawing an average of nearly $617 from savings to cover increased living costs, a new survey from New York Life finds.
“The financial picture for many Americans has changed significantly since the start of the year …”
New York Life
Yet, adding more confusion to an already confusing economy, a majority (62%) of adults still report overall confidence in their ability to meet their financial goals. However, this number is down from an average of 69% when compared to the beginning of the year.
The survey showed that macroeconomic factors, including inflation (65%), healthcare costs (34%), and the national economic recovery (32%), are the variables that Americans report as being most impactful to their sense of financial security.
“Three-quarters report that inflation has impacted either short- or long-term financial strategies, and with consumer sentiment falling by an average of 2.7% for those making $50,000 or less, it’s clear why nearly nine-in-10 adults (89%) are concerned about a potential economic recession in the U.S.,” according to the company.
“The financial picture for many Americans has changed significantly since the start of the year, and we’re seeing the positive expectations many Americans held about their finances heading into 2022 start to fade,” Aaron Ball, Senior Vice President, Head of Insurance Solutions, Service, and Marketing, New York Life, said in a statement.
“Our research found that macroeconomic factors, including inflation (65%), healthcare costs (34%), and the national economic recovery (32%), are the factors that Americans report as being most impactful to their personal sense of financial security. Three-quarters of those surveyed report that inflation has impacted either short- or long-term financial strategies and nearly 9 in 10 adults (89%) are concerned about a potential economic recession in the U.S.”
Despite declining confidence, finances remain strong
- More than half (59%) of adults have experienced recent financial bright spots, including paying off debt (19%), going on or booking a vacation (18%), and contributing to savings or emergency funds (17%).
- Though confidence has declined since January, a majority (64%) of adults expect their retirement savings to last their whole lives.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
