A new report from New York Life details Americans’ outlooks on their finances in the face of inflation and recession anxieties. Among their findings, they establish the truths about Gen Xers financial wellness, who are setting goals to pay off credit card debt and more.
Is Gen X Worried About Financial Health?
The average credit card debt for Gen Xers is $7,004, according to a new report from New York Life. It’s no surprise Gen X is setting goals to pay off credit card debt. However, uncertainty lingers as credit card interest rates have risen significantly over the last 12 months. The New York Life survey poll was conducted between December 17 and December 30, 2022. It was done among a national sample of 4,410 adults.
They found 66% of Americans feel confident in reaching their financial goal in 2023. In general, Americans are (33%) hopeful and (31%) stressed about their future finances. As per the survey, inflation tops the reason for Americans’ main financial concerns (68% of adults). In addition, 36% of the adults surveyed also see inflation as a cause of their financial worries and 29% of adults worry about the rising interest.
Additionally, 1 in 3 Americans feels hopeful about their finances at the end of 2022 going into 2023. In contrast, the confidence significantly differs by gender. The survey uncovered women and Gen Xers are feeling less optimistic about their finances. The reasoning behind this lesser positive outlook is because of the lower average amount of savings and overall feeling less assured. When it comes to retiring, 44% of women and 45% of Gen Xers feel less prepared in comparison to other demographics. When it comes to credit card debt, Gen Xers and Baby Boomers owe slightly more than the younger generations.
Gen X Financial Goals for 2023
“While financial health and confidence for Americans may differ for myriad factors, it’s worth noting that women and Gen Xers, or those within the “Sandwich Generation,” are likely parent-caregivers, handling both parent or guardian and unpaid adult caregiving roles, often leading to greater levels of stress,” said Suzanne Schmitt, Head of Financial Wellness at New York Life. “Of the 53 million Americans serving as caregivers, 61% of them are women as reported by AARP in 2020 and their financial needs and priorities, including saving, investing, and protection, require a relevant strategy to adequately support those distinct needs. This may include working with a trusted financial professional to understand those priorities, address barriers to equitable financial wellbeing, and to help improve confidence despite market uncertainty.” Source.
It’s easy to see how Gen X may be facing distinctive life challenges amid striving for financial wellness. According to the survey, over half of Gen Xers don’t have a retirement strategy or savings. However, for 2023 they have plans to tackle debt, build an emergency fund, and plan for retirement.
Although 3 in 10 (35%) Gen Xers do not have a financial strategy, the remainder 7 in 10 are goal focused on finances in 2023. The Gen X strategy point of attack starts with 45% of them looking to build an emergency fund, 44% wanting to be on track to retire at their desired age, and 40% focused on paying off credit card debt.
“Gen X Focused On Building a Strong Financial Foundation”
“Gen X is focused on building a strong financial foundation, which includes paying down high-interest debt and protecting against financial shocks,” said Schmitt. “Borrowers often tap credit cards to help cover income gaps or emergencies. Stress about debt and financial stability may impact an individual’s health and productivity, which could cause a ripple effect. A well-rounded financial strategy, including professional support, can help address relevant needs and improve financial health goals.” Source.
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