Northwestern Mutual's 2024 Planning and Progress study revealed the simple step that Americans have taken to double their retirement savings. According to the research, those who work with a financial advisor have around twice the retirement investment account balances compared to people who try to manage their retirement investing all on their own with no professional advice. The research showed that those who have a financial advisor guiding them have around $132,000 in retirement savings, compared with $62,000 among those with no advisor.
The average American emergency savings is only $500, significantly below the recommended three to six months of living expenses, leaving many ill-equipped for home repairs or emergencies. Homeowners in high climate-risk areas face challenges with insurance, as premiums soar in disaster-prone regions, leading to some homeowners considering going without insurance due to high costs. With over $12.7 trillion worth of U.S. real estate facing severe climate risk, insurers are either increasing rates or withdrawing from high-risk areas, leaving homeowners with limited coverage options.
For one in three Americans, a single surprise bill could spell financial crisis. That's according to a new survey by Empower, a retirement and financial services company, which found 32% of Americans have no emergency savings set aside. But not everyone is equally short on cash: Gen Zers have a median of $400 in their crisis funds, while boomers have saved up to five times as much.
Nearly 57% of workers from households earning less than $50,000 report delaying or canceling a major purchase. That compares with 48% of households making $50,000 to $100,000 and 35% of those earning more than $100,000. Among renters, nearly half (49%) say they were holding off on major purchases compared with 27% of homeowners. Roughly a third (32%) of respondents say their job security had no impact on their purchasing decisions.