No financial plan is the plan for one in three middle-income households, and those with clear goals are struggling to meet them.
Los Angeles, CA (PRWEB) June 09, 2014
Personal finance community site MoneyTips.com today announced the results of its Financial Wellness Study. The survey was designed to better understand the financial health of two key demographics: baby boomers and the American middle class.
Of note in the findings is the data highlighting the lack of financial planning among both groups and, perhaps more startling, that 41 percent of baby boomers worry they’re falling short of meeting their financial goals. The middle class is facing even steeper challenges, with just 47 percent reporting they’re on track to meet their financial objectives.
Findings from the survey, which AOL Daily Finance described as "scary", include:
Baby Boomers (ages 51+)
41 percent of baby boomers are worried about retirement while 24 million (32%) have no financial plan*;
63% are comfortable with their current standard of living;
59% are on target to meet their financial goals;
58% are on track saving for other milestones (weddings, home purchase/remodel, new car, etc.);
Nearly half (49%) have an up-to-date estate plan in place.
Middle Class Americans (households earning $40,000 to $80,000)
Less than two-thirds (63 percent) have clear financial goals;
Only 57% are comfortable with their current standard of living;
47% are on target to meet their financial goals;
42% are on target saving for major milestones (wedding, home purchase/remodel, new car, etc.);
33% have a current estate plan in place;
A dismal 32% are confident their savings will allow them to live comfortably in retirement.
“No financial plan is the plan for one in three middle-income households, and those with clear goals are struggling to meet them,” said Marc Diana, CEO of MoneyTips. “Spending time to make informed decisions about money management, borrowing, investing and savings will help you make the most out of what you have and save more in the long run.”
The survey also indicates that the majority of Americans in both demographics who own a home are happy with the financing they have in place. Yet, only 42% of middle-income respondents say they are saving enough for their children’s education, despite 91% reporting at least some college education themselves. Summer vacation plans are split nearly evenly, with 55 percent of boomers and 49 percent of middle-income earners planning to take some time off.
View the survey infographics at http://www.moneytips.com/one-in-three-baby-boomers-middle-class-americans-have-no-financial-plan.
About the study
To better understand American’s financial health, personal finance community MoneyTips.com recently commissioned an online survey of 535 Americans who are either 51 years or older or earn $40,000 - $80,000. The survey was fielded April 24 – May 25, 2014. Margin of error for the respondents ages 51+ is plus or minus 4.7 percent. Margin of error for respondents with an annual household income of $40,000 - $80,000 is plus or minus 4.7 percent.
76.4 million boomers (Source: US Census Bureau) x .32 = 24 million boomers without a financial plan
MoneyTips is a dedicated personal financial community that empowers consumers to make wise decisions about investing, borrowing, insurance, retirement and more. Free access to MoneyTips’ extensive network of financial experts as well as thousands of articles, videos and opinions provides common-sense approaches that empower you to improve your financial health. For more information, visit http://www.moneytips.com.