Inflation, geopolitical uncertainty and fears of a recession have undermined financial confidence across the board, in line with a latest report by Edelman Financial Engines.
Lower than one-quarter, or 23%, of greater than 2,000 adults polled earlier this fall said they felt “very comfortable” about their funds. Fewer — just 12% — consider themselves wealthy, the report said.
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Even with their high net value, lower than half of all millionaires, or 44%, felt “very comfortable” about their funds and fewer than one-third, or 29%, felt wealthy, the report also found.
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“Becoming a millionaire was at all times the top of monetary success,” said Jason Van de Loo, head of wealth planning and marketing at Edelman Financial Engines.
But at a time when inflation and stress levels are up, and markets and portfolios are down, “only a few Americans actually feel wealthy.”
‘What wouldn’t it take to feel wealthy?’
As of late, fewer Americans, including millionaires, feel confident about their financial standing.
In keeping with a separate report by Bank of America, 71% of employees feel their pay is not maintaining with the rising cost of living, bringing the number of people that feel financially secure to a five-year low.
Most adults said they feel less financially secure than they hoped to be at this stage of their life, Edelman Financial Engines also found.
What wouldn’t it take to feel wealthy? The short answer is more.
Jason Van de Loo
head of wealth planning and marketing at Edelman Financial Engines
To feel wealthy, most individuals said they would wish $1 million within the bank, although high net value individuals put the bar much higher: Greater than half said they would wish greater than $3 million, and one-third said it will take over $5 million.
“What wouldn’t it take to feel wealthy?” Van de Loo said. “The short answer is more.”
Americans feel the sting of inflation
No matter how much money they’ve, Americans across the board are cutting back or making trade-offs as a consequence of inflation and better prices, including buying fewer things, spending less on food and entertainment, and saving less for retirement or other long-term goals.
At the identical time, the non-public savings rate fell to 2.3% in October, a 17-year low.
“Individuals are probably getting a lesson on frugality this 12 months,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight.