Do two-thirds of us really have no financial plan?
Only 48% of
Americans say they think they are saving enough. And 30% feel that they
are not even slightly confident that they are saving enough for retirement.
That finding comes from the 2015 Consumer Financial Literacy Survey conducted
by the National Foundation for Credit Counseling. (The survey collected data
from 2,017 U.S. adults.)1
Only 40% of
us keep a regular budget. If you are one of those two out of five Americans, you’re on the right
track. While this percentage is on par with findings going back to 2007, the
study also finds that only 29% of Americans are saving any part of their annual
income towards retirement.1
Relatively
few seek the help of a financial professional. When asked “Considering
what I already know about personal finance, I could still benefit from some
advice and answers to everyday financial questions from a professional,” 75% of
respondents agreed with the statement. Yet only 12% indicated that they would
seek out the help of some sort of financial professional if they had “financial
problems related to debt.” While it isn’t surprising to think that 25% of
respondents would turn to friends and family, it may be alarming to learn that
18% would choose to turn to no one at all.1
Why don’t
more people seek help? After all, Americans of all incomes and savings levels certainly are
free to set financial goals. They may feel embarrassed about speaking to a
stranger about personal financial issues. It may also be the case that they
feel that they don’t make enough money to speak to a professional, that a
financial professional is something that millionaires and billionaires have,
not the average American worker. Another possibility is that they feel that
they have a good handle on their financial future; they have a budget and stick
to it, they save in an IRA (like a quarter of Americans), or a 401(k) (nearly
three out of ten Americans), and many use other investments (30%, according to
the survey). But that 75% admission above indicates that a vast majority of
Americans are not as confident.1
Defined
goals lead to definite plans. If you set financial objectives and plan for
them, you vault ahead of most Americans – at least according to these findings.
A written financial plan does not imply or guarantee wealth, of course; nor
does it ensure that you will reach your goals. Yet that financial plan does
give you an understanding of the distance between your current financial situation
(where you are) and where you want to be.
How much
planning have you done? Retiring without a financial plan is an enormous risk; retiring with a
financial plan that hasn’t been reviewed in several years is also chancy. A
relationship with a financial advisor may help to bring you up to date about
what you need to do, and provide you with more clarity and confidence when it
comes to the financial future.
Citations.
1 - nfcc.org/wp-content/uploads/2015/04/NFCC_2015_Financial_Literacy_Survey_FINAL.pdf [4/15]