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The combination of high inflation and lingering economic fears related to the COVID-19 pandemic could push more Americans to pay down debt and save for emergencies instead of building up retirement nest eggs, according to a recent survey by the First National Bank of Omaha (FNBO).
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2022 ABPN Financial Wellness Survey of 1,059 American adults, conducted in February, found that only 17% of respondents have made saving for retirement their top financial priority in 2022. And that’s despite 59% of Americans surveyed worrying they won’t be able to retire at age 65. , and almost three quarters (73%) fear that social security will eventually run out.
A much higher percentage of respondents have other plans for their money. Four in 10 said increasing their emergency and daily savings was a top priority, while 30% said paying off debt was a top priority. A further 30% said their financial wellbeing was better now than before the pandemic, and 44% said it was about the same. About a third believe that their credit history prevents them from ensuring their financial well-being.
The survey also revealed that many Americans are falling far behind their retirement savings goals. Nearly half (46%) of respondents have less than $15,000 saved for retirement, and a quarter say they have less than $1,000 in overall savings. About a quarter of American adults have no retirement savings, CNBC reported, citing data from PwC.
These percentages may not rise anytime soon, as 91% of FNBO survey respondents expect inflation to continue to rise through 2022. Forty-one percent said they expect a market correction before investing more aggressively in the stock market.
“Our survey numbers demonstrate how the right knowledge and guidance all play an invaluable role in helping build a smart financial future,” said Sean Baker, FNBO’s executive vice president, individual client segment, in A press release. “An important first step is to develop a financial roadmap. We recommend identifying short-term goals versus long-term goals and seeking out a trusted financial advisor who can help pave the way to achieving those goals.
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Here are some other highlights from the survey:
- To help boost their savings, 29% of respondents said they planned to get rid of their gym membership, while 94% said they would cancel at least one of their streaming service subscriptions. This year.
- Other financial plans include reducing spending in the following categories: dining out (64% of respondents said as much), clothing and personal items (49%), technology upgrades (43%), travel (40 %) and housing expenses (31%).
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