There’s an old saying: “Everybody talks about the weather, but nobody does anything about it.” Apparently, the same is true about inflation.
In its newly released 2024 Financial Concerns Report, Lincoln Financial Group has found that inflation is the top cited financial concern (66%) among American consumers across every generation. But few are taking action to combat it. Only 17% of respondents who cited inflation as a concern have recently sought advice about how to address their concern.
This despite 59% of consumers expressing concern about whether they’ll have enough income to keep up with rising costs of living, as well as whether they’ll have enough income in retirement. The survey found having enough income in retirement is the No. 3-ranked concern among all consumers, but 41% of concerned consumers have not discussed or researched ways to address it.
Even those who work with a financial professional are not immune to these concerns, perhaps because of a lack of awareness—just 21% of consumers have sought advice about having enough income in retirement, despite it being their No. 2-ranked concern. Similarly, while the impact of taxes on retirement savings/investments is the third-ranked concern, only 28% of concerned consumers have sought advice from a financial professional about how to address it in the past 3 months,
“We see a clear opportunity for advisors to address consumers’ top financial concerns head on with their clients. Many may not realize the solutions available to them, so providing education on available support is crucial for maintaining strong client relationships,” said Ralph Ferraro, senior vice president, Head of Retirement Plan Services at Lincoln.
Primary concerns vary by generation
While inflation is the top concern across all generations (expressed by 61% of Gen Z; 67% of Millennials; 68% of Gen X; and 65% of Boomers), specific nuances surfaced within each group in the survey:
• Gen Z is the only generation citing “Paying for my education expenses/student loan debt” as a top three concern (48%).
• Millennials, who have faced several economic challenges throughout their lifetimes, are the most concerned generation overall, particularly when it comes to finding affordable housing (52%) and paying for childcare (37%).
• Gen X were the most concerned (64%) about having enough income in retirement.
• Baby Boomers were the only generation to cite “Protecting myself against identity theft, cybersecurity, fraud, etc.” in their top three concerns (54%).
“When it comes to our finances, so many of us are concerned about the same things, but it’s important to recognize the unique needs we have throughout our different stages of life,” said Tim Seifert, senior vice president, Head of Retirement Solutions Distribution. “We hope that this report will be a catalyst to help spark conversation and get people actively thinking about ways to take action to address their own concerns and build strong financial futures.”
April is Financial Literacy Month
The release of the 2024 Financial Concerns Report intentionally coincides with the beginning of Financial Literacy Month. Throughout the month of April, Lincoln will be posting educational content across its social media channels, providing valuable insights into the report.
Additional guidance and resources on ways to take action towards many of the most common concerns can be found in Lincoln’s Financial Wellness Toolkit, providing steps to making a financial plan, tips for preparing for retirement, and actionable ways to create an emergency fund for the “what ifs.” The Toolkit is also home to a number of financial calculators that can support a number of financial goals like savings, debt paydown, college planning, and compound interest.
SEE ALSO:
• Lincoln Touts Shift from ‘Retirement Planning’ to ‘The Action Plan’
• Early 2025 Social Security COLA Forecast Rises Again
• $1.46 Million: New ‘Magic Number’ for a Comfortable Retirement
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.
