Personal Finance
Americans Who Do This Have Saved Twice as Much for Retirement Than Those You Don't
Published:
Economic conditions for Americans over the last four years have been challenging, to say the least. Inflation, struggling small business and employment rates, higher taxes, and a litany of other problems have become major issues for the bulk of Americans.
Northwestern Mutual conducts an annual survey, The Planning and Progress Study, that explores the attitudes, behaviors, and decisions made of Americans from the elderly and Boomer generations, all the way to Gen-Z. The 2024 study revealed some surprises, especially from Gen-Z.
There was a consensus across the board from Americans in their 20s to their 80s on several issues. A majority held the following concurring concerns for 2024:
The most significant difference among respondents was between those who had hired a Financial Advisor versus those who did not. Some of these behavior gaps included:
Topic |
With Advisor |
W/O Advisor |
Expected retirement age |
64 |
66 |
Average Savings |
$132,000 |
$62,000 |
Had an emergency fund |
84% |
48% |
Had a plan to pay off debt |
79% |
49% |
Have a health care plan for post retirement |
69% |
38% |
Factored inflation into financial plan |
69% |
48% |
Have a plan factoring economic up and down cycles |
79% |
38% |
Perhaps the most startling and unexpected statistics came from Gen-Z respondents. Although stereotypically perceived as frivolous, lazy, and spoiled, they demonstrate evidence of being more financially prescient than most of their elders. For example:
While the overall majority of Americans statistically appear to benefit from a Financial Advisor, African Americans reportedly gained the most, among all other sub-categories.
Topic |
With Advisor |
W/O Advisor |
Expected retirement age |
61 |
64 |
Average Savings |
$76,000 |
$26,000 |
Had an emergency fund |
76% |
36% |
Had a plan to pay off debt |
77% |
46% |
Have a health care plan for post retirement |
72% |
42% |
Factored inflation into financial plan |
73% |
46% |
Have a plan factoring economic up and down cycles |
72% |
33% |
With all of the financial pressures faced by everyday Americans, The objective perspective of a Financial Advisor can prove to be invaluable. The caution that one seeking a Financial Advisor needs to bear in mind is for any potential conflicts of interest that may color the advisor’s guidance. If the strategy is to plan for an estate to grow safely and meet established goals to address specific contingencies, then some tips that come to mind from personal experience include:
This article and the opinions expressed are meant to be for informational purposes only, and are not intended to serve as tax or financial advice. A professional accountant or financial advisor should be consulted if that type of advice is being sought.
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