Amid continued high inflation, rising day-to-day costs, and debt, just over a quarter of Americans are currently saving for retirement, finds new research from Thrivent.
The organization’s recent Financial Fitness survey analyzes how Americans are prioritizing their retirement savings, revealing that over half (53%) of 2,200 respondents are concerned about their ability to retire when they see fit.
Much of the sentiment comes from a lack of financial confidence, Thrivent observes in its report. Despite being on track to inherit a majority of the upcoming wealth transfer, younger investors like Gen Z and Millennials were the least financially confident groups, at 21% and 26%, respectively. This was followed by Gen Xers (29%) and Baby Boomers (38%).
Instead, Gen Z and Millennials said they would rather seek financial advice from family members or friends rather than an advisor. Forty-two percent of Gen Zers and 47% of Millennials received financial advice from loved ones, compared to 37% of Gen Xers and 27% of Boomers.
Yet, studies show that people who work with a financial professional are likelier to be more financially confident and lead happier lives. A 2023 study by the Financial Planning Standards Board found that those who receive advice from a certified financial planner enjoy life more, have a better understanding about their finances and overall feel financially confident.
Still, nearly three-in-10 (29%) Americans don’t seek out financial advice from any source and only 22% rely on a financial advisor for advice. Women were also less likely than men to have an investment strategy, at 43% who don’t utilize one compared to 27% of males.
“Good money management starts with confidence,” said Thrivent Financial Advisor Sarah Hamlen. “I believe seeking professional financial advice, developing and managing a budget, and taking actionable steps toward retirement planning are fundamental moves anyone can do to meaningfully improve their financial fitness.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.