Lincoln Financial Study Finds Inflation Is the Number One Financial Concern Among Consumers of Every Generation
April 02 2024 - 7:30AM
Business Wire
Lincoln Financial celebrates Financial Literacy
Month with a new 2024 Financial Concerns Report addressing the top
financial concerns impacting consumers through each life stage
In honor of Financial Literacy Month, Lincoln Financial Group
(NYSE: LNC) today published its 2024 Financial Concerns Report to
shine a light on the biggest financial concerns impacting Americans
through every stage of their lives and offer insight into whether
people are addressing their concerns.
“When it comes to our finances, so many of us are concerned
about the same things, but it’s important to recognize the unique
needs we have throughout our different stages of life,” said Tim
Seifert, senior vice president, Head of Retirement Solutions
Distribution. “Lincoln is committed to providing financial security
to our customers and their families, and we hope that this report
will be a catalyst to help spark conversation and get people
actively thinking about ways to take action to address their own
concerns and build strong financial futures.”
Inflation is impacting consumers across generations.
The study revealed that inflation is the top cited financial
concern (66%) among American consumers across every generation.
Inflation also underpinned other financial worries, with 59% of
consumers concerned about whether they’ll have enough income to
keep up with rising costs of living, as well as whether they’ll
have enough income in retirement. Despite the focus on inflation,
few are taking action to combat it – even among those who work with
a financial professional. Only 17% of respondents who cited
inflation as a concern have recently sought advice about how to
address their concern.
Each generation has unique concerns aligned to their specific
stage of life.
While inflation is a top concern across all generations,
specific nuances surfaced within each group:
- Gen Z is the only generation citing "Paying for my education
expenses / student loan debt” as a top three concern (48%).
- Millennials, who have faced several economic challenges
throughout their lifetimes, are the most concerned generation
overall, particularly when it comes to finding affordable housing
(52%) and paying for childcare (37%).
- Gen X were the most concerned (64%) about having enough income
in retirement.
- Baby boomers were the only generation to cite “Protecting
myself against identity theft, cybersecurity, fraud, etc.” in their
top three concerns (54%).
Consumers are more likely to seek information about financial
topics related to affording costs of living, versus concerns that
can be addressed with retirement and insurance products.
For example:
- Having enough income in retirement is the #3 ranked concern
among all consumers, but 41% of concerned consumers have not
discussed or researched ways to address it
- Supporting myself or family if I become disabled or have a
chronic illness is the #4 ranked concern, yet 51% of concerned
consumers have not discussed/researched
Even those who work with a financial professional are not immune
to these concerns, perhaps because of a lack of awareness – just
21% of consumers have sought advice about having enough income in
retirement, despite it being their #2 ranked concern. Similarly,
while the impact of taxes on retirement savings/investments is the
#3 ranked concern, only 28% of concerned consumers have sought
advice from a financial professional about how to address this
concern in the past 3 months.
“We see a clear opportunity for advisors to address consumers’
top financial concerns head on with their clients. Many may not
realize the solutions available to them, so providing education on
available support is crucial for maintaining strong client
relationships,” said Ralph Ferraro, senior vice president, Head of
Retirement Plan Services. “At Lincoln, we understand that preparing
for the impacts of inflation and ’what ifs’ that can be barriers to
financial success requires personalized support and innovative
digital solutions. Our model leverages both to help individuals
navigate their financial journey with confidence.”
Throughout the month of April, Lincoln will be posting
educational content across its social media channels, providing
valuable insights into the report. Consumers looking for guidance
and resources on ways to take action towards many of the most
common concerns can use Lincoln Financial’s Financial Wellness
Toolkit, that provides steps to making a financial plan, tips for
preparing for retirement, actionable ways to create an emergency
fund for the “what ifs.” The Toolkit is also home to a number of
financial calculators that can support a number of financial goals
like savings, debt paydown, college planning, compound interest and
more.
About Lincoln Financial’s 2024 Financial Concerns
Report
The 2024 Financial Concerns Report is made from data obtained by
Lincoln’s Consumer Sentiment Tracker, which is a research program
that includes quarterly tracking surveys as well as omnibus surveys
throughout the year. The goal of this research is to gauge consumer
sentiment on a variety of financial topics and examine trends over
time.
In January 2024, data was collected from 1031 US adults using
the Qualtrics survey platform. The sample includes quotas to be
representative of the total U.S. adult population.
We are defining each generation as the following: Gen Z (age
18-28)*, Millennials (age 29-43), Gen X (age 44-59), Baby Boomers
(age 60-78)
*Only Gen Z adults 18 years and older participated in this
study.
About Lincoln Financial Group
Lincoln Financial Group helps people to plan, protect and retire
with confidence. As of December 31, 2023, approximately 17 million
customers trust our guidance and solutions across four core
businesses — annuities, life insurance, group protection, and
retirement plan services. As of December 31, 2023, the company had
$295 billion in end-of-period account balances, net of reinsurance.
Headquartered in Radnor, Pa., Lincoln Financial Group is the
marketing name for Lincoln National Corporation (NYSE: LNC) and its
affiliates. Learn more at LincolnFinancial.com
Lincoln Financial Group® affiliates, their distributors, and
their respective employees, representatives, and/or insurance
agents do not provide tax, accounting, or legal advice. Please
consult an independent professional as to any tax, accounting, or
legal statements made herein.
LCN-6505675-032624
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Media Alexandra Grant alexandra.grant@lfg.com
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