A recent survey from U.S. Bank found that while many Americans continue to make responsible financial choices — budgeting (68%), reducing leisure spending (64%) and creating financial plans (57%) — most Americans feel a lack of control over many important life decisions due to economic forces beyond their control.
Overall, 81% say it’s harder to retire now than it was for their parents (87% millennials; 84% Gen Z and Gen X; 68% baby boomers), and 77% said the current economic environment influences their retirement timeline (86% Gen Z and millennials; 79% Gen X; 55% boomers).
Seventy-seven percent said the economy influences where to live, including more affordable parts of the country or tax-friendly states (90% Gen Z; 84% millennials; 76% Gen X; 61% boomers), and 75% said the economy influences whether they buy or rent a home (91% Gen Z; 84% millennials; 72% Gen X; 51% boomers)
Significantly, 63% say they are worried they will have to come out of retirement due to economic factors, and that number is stronger for younger generations (77% millennials; 74% Gen Z; 69% Gen X; 39% boomers).
In addition, while traditional financial goals like owning a home and saving for retirement are still as important across generations and genders as ever, personal goals like having meaningful relationships with family, having children and maintaining emotional well-being are also extremely important, particularly to younger generations.
“This year’s survey reveals a seismic shift in the American dream,” said Scott Ford, head of Wealth Management at U.S. Bank. “Although many survey respondents are making prudent choices, they are disheartened and wonder if their efforts are worth the sacrifice. The good news is that even small steps can help you take control of your financial health, including having a financial plan and investing what you can, even if it’s a small amount.”
