Edelman Financial Engines (EFE), a leading independent wealth planning and workplace investment advisory firm, has released its latest Everyday Wealth in America report. For the third consecutive year, the report examines critical issues at the intersection of life and finances, highlighting the challenges many face in achieving financial security.
“This research underscores the vital role financial professionals play in guiding individuals through this complex and often overwhelming journey. They help tackle current challenges while laying the groundwork for future goals,” said Amin Dabit, SVP and Head of Wealth Planning at Edelman Financial Engines.
Key Findings from the 2024 Report:
- Income Expectations: A significant portion of Americans, including those who are affluent, express low confidence in their financial situations. The research indicates that 58% believe a six-figure income (at least $100,000) is necessary to feel secure about everyday expenses, with 25% asserting that more than $200,000 is required.
- Health vs. Wealth: When faced with the choice of five additional healthy years or an extra $1 million in retirement savings, more than half (51%) opted for the monetary benefit.
- Credit Card Debt: Credit card debt remains a considerable barrier to wealth accumulation. Among the 93% of Americans with credit cards, nearly half (49%) carry a balance month to month, and 21% owe $20,000 or more.
- Homeownership Challenges: Economic pressures are affecting housing decisions, with 50% of homeowners under 50 feeling trapped in their current homes. Many cite high interest rates as a barrier to buying or relocating.
- Geographical Mobility: Approximately 41% of Americans, especially 56% of those in their 30s, are willing to move to another state to reduce housing costs. Conversely, 25% express that financial concerns limit their living choices, and 21% believe they cannot afford their desired home.
- Gen X Financial Strain: Gen Xers are increasingly feeling the pressure of supporting both their adult children and aging parents. Only 24% believe their children will be independent by age 21, while 20% are currently providing care to family members, leading to increased financial strain.
- Retirement Aspirations: Over one-third (37%) of future retirees want a more active retirement than previous generations, with 42% seeking more activities and 39% desiring adventure. Despite two-thirds (65%) feeling somewhat confident about affording retirement, 32% fear they may never fully retire.
- Political Climate Concerns: In an election year marked by contention, 86% of Americans view the political environment as a major stressor on their financial well-being, alongside inflation. Nearly 22% have adjusted their financial strategies in anticipation of the election.
- Engagement with Financial Planners: Increasing numbers of Americans are seeking financial planners for retirement guidance, with 74% of those who work with professionals reporting reduced stress about financial issues. The primary interests for those without professional help include retirement income planning (38%) and developing a comprehensive financial plan (34%).
Dabit emphasized, “Many financial decisions are intertwined with personal life choices, whether it’s about buying a home, managing family duties, navigating political uncertainties, or planning for retirement. This research highlights the importance of financial professionals in addressing these complex issues and preparing for future goals.”
For a deeper look into the findings, access the complete Everyday Wealth in America 2024 report.
