Americans are facing a higher cost of living a new survey shows by leveraging their savings.
Follow New York Life Wealth Tracking Survey.
New York Life polled more than 2,000 Americans about their current short- and long-term financial goals, their progress toward these goals, and their overall sense of financial security. June 2022.
Findings are consistent with recent data from the US Office of Economic Analysis, found savings balances and savings rates are in free fall since hitting record highs during the first two years of the COVID-19 pandemic.
Nearly 40% of Americans worry about affordability groceryand more than a third are concerned that they will not be able to pay Monthly bill, the survey showed. It’s for good reason: Grocery costs are up more than 12.2% from a year ago, according to the US Bureau of Labor Statistics.
“The financial picture for many Americans has changed dramatically since the start of the year, and we see the positive expectations many Americans hold about them,” said Aaron Ball, senior vice president at New York Life. Their finances in 2022 begin to fade. .
According to the study, Americans’ hopes for their finances are fading faster, having fallen 11% since January 2022. More than 20% of Zers and millennials feel particularly hopeless about affordability for long-term financial goals, such as buying a Home page.
Unable to plan for the distant future, Americans are shifting their focus to the present. Research shows that 65% of respondents are concerned about the impact of inflation on their finances and more than a third worry about affordability health care.
To combat inflation, Americans eat out less often, travel less, and attend fewer events like social gatherings or concerts. “Americans are certainly incorporating the economic environment into their short-term financial strategies by cutting discretionary spending,” Ball said.
Also relevant: 32% of respondents admit they don’t contribute to their retirement. This austerity strategy is not supported by most financial advisors, and as research shows Americans are less confident in their ability to pay their full bills retirement.
That said, not all is bad. The study also found that 59% of Americans have continued to meet financial goals, such as paying off debt or contributing to their emergency savings, even amid soaring prices.
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.
