A recent survey by Bankrate reveals that 74% of Americans are burdened with financial regrets. The focus on savings, especially for retirement, has intensified as the nation grapples with economic challenges, including looming recession threats and inflation.
Top Financial Concerns
The Bankrate study highlighted several key areas of concern:
- Delayed Retirement Savings: The most prominent regret, voiced by 21% of respondents, was not commencing retirement savings early enough.
- Credit Card Debt: 15% of participants expressed remorse over accumulating excessive debt.
- Emergency Funds: 14% felt they needed to save more for unforeseen emergencies.
- Student Loan Debt: 5% were troubled by their student loan debt.
- Children’s Education Savings: 3% regretted not saving sufficiently for their children’s education.
- Home Purchases: Another 3% lamented buying homes beyond their financial capacity.
- Other Financial Regrets: 12% had diverse financial regrets not listed above.
When categorized, the regrets predominantly revolved around insufficient savings (41%)—encompassing retirement, emergencies, and education. In contrast, 24% were related to overwhelming debt, including credit cards, student loans, and housing. Interestingly, 20% claimed no financial regrets, while 6% were uncertain about their primary financial concerns.
Generational Perspectives on Savings
The apprehension about retirement savings seems to grow with age:
- Baby Boomers (ages 59-77): 34% regretted not starting their retirement savings sooner.
- Gen X (ages 43-58): 26% shared this sentiment.
- Millennials (ages 27-42): 11% felt they should have started saving earlier.
- Gen Z (ages 18-26): Only 5% expressed this concern, likely due to their age.
Financial Regrets and Stress
There’s a clear link between financial regrets and heightened stress. Nearly half (48%) of those with financial regrets admitted to increased stress levels over the past year. Disturbingly, 21% of these individuals reported a significant surge in their stress levels.
YouGov Plc carried out this insightful survey for Bankrate in mid-June. It encompassed the views of 3,684 U.S. adults, of which 2,733 confirmed having financial regret.
The Bottom Line
As the American economy faces uncertainties, it’s evident that financial regrets, especially around savings, are a significant concern for many. Addressing these regrets and planning for the future is crucial for economic well-being and peace of mind.