Financial regrets are a common concern for many Americans, especially when it comes to retirement planning. According to a recent survey conducted by YouGov on behalf of Bankrate, 77% of U.S. adults hold some type of financial regret. Among these regrets, not starting to save for retirement early enough emerged as the top concern, with 22% of respondents expressing remorse over this particular issue.
The survey, which polled 2,355 American adults in July, highlighted the importance of setting aside funds for retirement. It revealed that not getting an early start on saving for retirement has been the biggest financial regret for Americans for six out of the seven years of polling. This finding underscores the significance of planning and saving for retirement as early as possible to avoid future regrets.
As Americans grapple with the idea of retirement, a Northwestern Mutual report earlier this year shed light on the financial expectations surrounding retirement savings. The report revealed that the perceived amount needed to retire comfortably has reached $1.46 million, a significant increase from previous years. Despite this high target, the average amount saved by U.S. adults for retirement currently stands at $88,400, leaving a substantial gap of $1.37 million to reach the desired retirement goal.
In addition to the lack of early retirement savings, the survey identified other common financial regrets among American adults. Not having a sufficient emergency fund and accumulating excessive credit card debt were cited as major regrets by double-digit percentages of respondents. While 18% of adults considered the absence of an emergency fund as their biggest regret, 14% cited credit card debt as a significant concern. These findings highlight the importance of building financial resilience through emergency savings and responsible credit card use.
Furthermore, the survey revealed that some Americans also regretted specific financial decisions related to student loan debt, saving for a child’s education, and purchasing a home beyond their means. While 5% of respondents felt remorse over student loan debt, 4% regretted not saving enough for their child’s education. Additionally, 2% expressed regret over buying a house that stretched their financial limits. Overall, 12% of respondents cited other financial regrets that weighed on their minds, indicating a diverse range of financial concerns among Americans.
Despite the prevalence of financial regrets, the survey also highlighted efforts by some Americans to address and improve their financial situations. Nearly two-thirds of respondents reported making progress in the past year to address their financial regrets, with many indicating “some” or “significant” progress. However, a significant portion of respondents, 40%, admitted to making no headway in addressing their financial concerns, underscoring the challenges many face in achieving financial security.
Various factors were identified as hindrances to addressing financial regrets in the past year. Inflation and high prices were cited by 45% of respondents as the biggest obstacles to making financial progress. This was followed by employment situations, which were mentioned by 18% of respondents. High interest rates, family dynamics, and other factors were also identified as challenges that impeded efforts to address financial regrets, highlighting the complexity of financial decision-making and planning.
Greg McBride, Chief Financial Analyst at Bankrate, emphasized the importance of patience and persistence in addressing financial challenges, particularly in the face of rising prices and inflation. McBride noted that while inflation may be moderating, prices continue to rise, making it crucial for individuals to plan and save wisely for their financial futures.
Inflation has been a significant concern for many Americans, with the Consumer Price Index increasing by 2.9% year-over-year in July. This uptick in inflation underscores the importance of prudent financial planning and saving to mitigate the impact of rising prices on individuals’ purchasing power and overall financial well-being.
While financial regrets are a common experience for many Americans, the survey also revealed that a notable percentage, 18%, do not hold any financial regrets. This finding suggests that there are individuals who have successfully navigated their financial decisions and are content with their current financial situations.
In conclusion, the survey conducted by YouGov on behalf of Bankrate sheds light on the diverse financial concerns and regrets that Americans face, particularly in the context of retirement planning. From the importance of early retirement savings to the challenges of addressing inflation and rising prices, the survey underscores the need for prudent financial planning and decision-making to secure a stable financial future. By recognizing and addressing financial regrets, individuals can take proactive steps to improve their financial well-being and achieve their long-term financial goals.