A survey of 2,000 Americans found that 53% of respondents feel stuck, overwhelmed, or unsure about their finances. The primary financial concerns include paying for necessities (36%) and sticking to a monthly budget (36%). Additional concerns highlighted by respondents include long-term financial security: 22% are worried about their savings strategy, 21% about retirement, 20% about loans and debt payments, and 9% about investing.
The survey, conducted by Talker Research on behalf of Zoe Financial, pointed to the overwhelming amount of information on the internet and social media as a key factor contributing to these feelings of financial paralysis. Respondents reported feeling most helpless when it came to the cost of living (25%), investing (24%), and budgeting and saving strategies (23%). Regrets about past financial decisions were common; 77% of participants wished they could have done things differently to improve their financial futures.
Specifically, 55% wish they had implemented better savings strategies, 41% wish they had adhered to a stricter monthly budget, and 38% wish they had invested more wisely. “It can be challenging to navigate an ever-changing world with financial confidence,” said Andres Garcia-Amaya, CFA, Zoe Financial’s Founder & CEO. “Finding advice you can trust isn’t always easy, but with the right help, people can feel more in control of their financial journey.”
While 83% of respondents expressed a desire to be better prepared financially, more than half (53%) don’t know where to start or fear they have waited too long to seek financial advice.
The average person surveyed said they didn’t take their retirement planning seriously until age 38, even though they believed the ideal time to start is at 29.
Americans struggle with financial planning
There is hope for younger generations, who reportedly began planning for retirement at age 25, compared to millennials starting at age 34.
In contrast, Gen X started at age 38, and baby boomers waited until age 43. Only 26% of respondents said they have a financial advisor. Among those who do not have one, the biggest deterrent is the misconception that financial advice is only for the affluent, with 39% believing they can’t afford it and 24% thinking they don’t have enough money to justify a financial advisor’s services.
Additional concerns include fears of being scammed (19%) and the belief that financial advisors and custom portfolio strategies are only for the wealthy. “Finances are deeply personal and often emotional, so many people hesitate to trust technology with their financial future blindly,” added Garcia-Amaya. “People still think financial advice and investment management are only for the wealthy, which can discourage them from seeking guidance.
The truth is that used to be the case, but we believe in changing the industry. By enabling more people to find the right advisor for their needs, we’re trying to help them take the first step toward financial confidence and long-term success.”
Despite advances in technology, many prefer human interaction in financial consultations. Thirty-seven percent said they would feel uncomfortable relying solely on AI-driven tools for managing their finances, deeming human financial advisors more trustworthy (58%), comprehensible (50%), and effective (47%).
When asked about their AI concerns regarding personal finance, respondents mentioned distrust in new technology, issues regarding the safe storage and use of sensitive data, and a lack of clarity on effectively using AI tools.
Image Credits: Photo by Uday Mittal on Unsplash
