IF NOT NOW – WHEN?

Statistics show 56 percentage of Americans do not have enough money to retire. It also shows 40 percentage have debt that is over $5,000. Statistics also show many Americans do not have Wills, 529 College Plans setup for their children or the right amount of Insurance Coverage.

Are you where you want to be at your stage in life?

Allow me to breakdown these questions with the most recent available data:

Percentage of Americans that do not have enough money to retire

  • Estimate: Around 56% of Americans do not believe they have enough money saved to retire comfortably. This statistic varies depending on the source, but consensus is that more than half of Americans are underprepared for retirement. The specific amount deemed “enough” can vary widely based on individual circumstances.

Why?

  • Rising Cost of Living: The cost of healthcare, housing and everyday expenses has risen faster than wages.
  • Stagnant Wages: Wage growth has been slow, making it harder for people to save.
  • Lack of Financial Literacy: Many people are not educated about the importance of retirement savings and the strategies involved.
  • Debt: High levels of personal debt make it difficult to prioritize saving for retirement.

Percentage of Americans with Debt over $5,000

  • Estimate: Approximately 47% of Americans have credit card debt, and nearly 40% of them have balances of $5,000 or more. The percentage varies based on the type of debt (credit card, student loans, medical debt, etc.)

  Why?

  • High Living Costs: Americans rely on credit to cover everyday expenses due to the high cost of living.
  • Medical Expenses: Unexpected medical bill are a significant contributor to debt.
  • Lack of Emergency Savings: Without emergency funds, people often turn to credit cards or loans during financial crises.
  • Student Loans: Education debt is a substantial burden for many, particularly younger Americans.

Percentage of Americans without Wills, 529 Plans, or adequate insurance coverage

  • Wills: Approximately 67% of Americans do not have a will, according to a recent survey.
  • 529 Plans: Only about 13% of families utilize 529 college savings plans.
  • Insurance Coverage: Around 40% of Americans do not have life insurance, with some estimates suggesting even higher percentages lack adequate coverage for other types of insurance (health, disability, etc.).

Why?

 Procrastination: Many people delay planning for death or college savings, thinking they have more time or not wanting to confront these issues.

  • Financial Constraints: Some may feel they cannot afford to set aside money.
  • Lack of Awareness: A significant number of Americans may not fully understand the importance or availability of these financial tools.
  • Complexity and Misinformation:  Financial planning, including wills and insurance can be complex, leading to confusion and avoidance.

Overall Reasons:

The underlying reasons for these financial challenges often include societal and psychological factors such as fear, procrastination and lack of awareness and economic factors such as rising cost and wage stagnation.

Our firm can assist by answering questions and providing resources that are available. It’s never to late to start. So if not now – when?

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** Statistics provided from a combination of well-known financial studies, surveys and reports. Sources are the Employee Benefit Research Institute (EBRI). Gallup & Bankrate surveys. Experian & Federal Reserve reports. Creditcards.com & Nerdwallet. Life Insurance and Market Research Association & National Association of Insurance Commissioners (LIMRA & NAIC). These statistics are widely cited in financial news, academic research and government reports, and are generally regarded as reliable reflections of the current state of financial planning in the United States. The exact numbers can vary slightly depending on the specific year or survey, but these sources provide a consistent picture of the financial challenges faced by many Americans.