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Thrivent Survey Reveals Financial Confidence Crisis Among Americans

A recent survey by Thrivent, a well-known financial services organization, unveils a troubling disconnect between the financial fears of Americans and their proactive measures to address them. While many individuals express significant financial concerns, the steps taken to improve their financial literacy, manage debt, and prepare for retirement fall woefully short. This analysis not only highlights pervasive anxiety but also points to a significant gap in financial confidence across various age groups.

According to the Financial Fitness Survey conducted by Thrivent, only 30% of American respondents reported feeling very confident in their ability to manage their finances effectively. This alarming statistic underscores the reality that a majority of Americans harbor uncertainties when it comes to their financial futures.

Retirement Worries on the Rise

A striking finding from the survey is that 53% of Americans are either very or somewhat worried about their capability to retire on their preferred timeline. In stark contrast, only 28% indicated they are actively saving for retirement. This gap illustrates a significant barrier to achieving financial security, especially among younger generations. Gen Z participants expressed the least confidence, with only 21% reporting they feel very capable of handling their financial affairs.

In a similar vein, concerns about debt are prevalent, with 48% of the population indicating anxiety over their financial obligations. Yet only 36% of those surveyed are setting aside plans to tackle their debts this year. The apparent reluctance to engage with these pressing issues may stem from a lack of financial literacy and confidence, with younger generations particularly affected.

Key Opportunity Areas

Thrivent’s survey reveals several key areas where Americans have room to improve their financial well-being:

1. Seek Financial Advice: A significant 29% of adults do not consult any professional financial advice. Only 22% rely on a financial advisor. Engaging with an expert can help individuals navigate complex financial landscapes and build a more solid financial plan.

2. Rely on Experts for Guidance: Younger Americans are more inclined to seek advice from family and friends rather than professionals. Approximately 42% of Gen Z and 47% of Millennials consult loved ones for financial guidance, compared to 27% of Baby Boomers who do the same.

3. Budgeting Practices: Baby Boomers lead the way in budgeting, with 44% claiming to maintain a budget, as opposed to only 32% of Gen Z, 36% of Millennials, and 36% of Gen X who follow a similar practice.

4. Investment Strategy Disparities: The survey unveiled a notable gap in investment strategies between genders. While 35% of respondents do not have any investment strategy in place, women are disproportionately affected, with 43% lacking one compared to 27% of men.

Tips for Improving Financial Fitness

Thrivent provides three actionable tips to enhance financial fitness:

• - Create a Training Plan for Success: Just as physical fitness benefits from structured planning, so does financial health. Collaborate with a financial advisor to construct a tailored financial plan that sets clear goals, targets savings, and establishes a timeline for achievement.

• - Build Financial Literacy: Financial literacy is akin to muscle; it strengthens with consistent use. Allocate time each month to focus on a specific financial topic, such as investment strategies or retirement options, to build a more profound understanding of one's financial landscape.

• - Start Retirement Savings Early: While previous years may have offered the best opportunities to invest in retirement, the next best time is now. Individuals are encouraged to automate savings contributions, utilize employer-sponsored matches, and devise a robust savings plan to harness the benefits of compound interest.

Survey Methodology

The Financial Fitness Survey was conducted online by Morning Consult from December 5 to December 12, 2024, with a total sample of 2,200 adults aged 18 and older. The findings were weighted to reflect demographic characteristics, ensuring representative insights into the financial concerns of the American populace.

About Thrivent

Thrivent is a diversified financial services organization catering to over 2.4 million clients across the United States. With a focus on fostering financial clarity and enabling meaningful lives, Thrivent offers a range of financial advice, insurance, investments, and products tailored to individual needs. Its recognized stability is underscored by robust ratings from leading independent agencies, including an A++ rating from AM Best. For more information, visit Thrivent.com.

In conclusion, as Americans grapple with increasing financial anxiety, addressing the knowledge gap through education and professional advice becomes crucial. By taking informed steps towards financial literacy and planning, individuals can work towards overcoming their fears and achieving long-term financial security.