Protecting Finances is High Priority for Most Americans

But a Mutual of Omaha Survey Reveals Many Aren’t Sure How to Do It 

As Americans continue to wrestle with rising inflation, volatile markets and other fallout from the COVID pandemic, many are feeling the heat to protect their financial future.

However, a recent survey conducted by Mutual of Omaha suggests many aren’t sure how they’ll do it.

With 88% of respondents agreeing they have a responsibility to protect their own or their family’s financial future, financial protection is clearly top of mind for most people. However, many expressed uncertainty in their ability to achieve that goal. Just one in four say they feel confident in their financial future.

Feeling Stuck
Overall, just 26% of respondents can be considered Protection Confident, or feeling secure, about their financial futures both today and 10 years in the future. That leaves the remaining 74% either uncertain about their protected future or falling into the Protection Threatened category.

While many respondents say they understand the importance of securing their financial future, they said they feel stuck by not knowing what their first steps should be. The sentiment of one millennial woman summed up many consumer comments, “Finances are really intimidating, and I want to learn more and make smart decisions, but I don’t know where to start.”

Others voiced concerns that rising prices and volatile markets will leave them with little or no money to invest and if any investments they can make will be safe. This Gen X mom voiced what many are feeling, “It’s difficult because the world seems to be rapidly changing. It is hard to know what is in store.”

Life Stages
Millennials were the most confident generation — possibly feeling time was more on their side to improve their financial lot in life.

Couples with children also topped the confidence list compared to singles and couples without kids. That added responsibility with more folks in the household seems to sharpen our financial focus.

How to Get Started
Are you spinning your wheels wondering how to make your financial future brighter?  Mutual of Omaha financial advisor Marty Higgins recommends starting with the big picture.

“Imagine there’s a 1,000-piece jigsaw puzzle scattered on the table in front of you. Where would you start? Most would say on the edges or a corner,” Higgins said.  “I would start by looking at the picture on the cover of the box.”

Once you can clearly see your goal — or goals — you’re ready to make a plan. That could start simply with setting a budget and understanding your expenses or reaching out for help from a financial advisor.

How Hard is Your Money Working?
Regardless of where you are on your financial journey — just getting started or nearing retirement — Higgins said confidence in your financial future starts with an understanding of how your money is working for you.

“You might have an investment portfolio you manage yourself, a 401(k) from your employer, and even a few insurance policies picked up over the years,” Higgins said. “Do they all work together? Or are the pieces of your financial life operating independently and without a plan?”

To read more about finance basics, visit https://www.mutualofomaha.com/advice/learn-the-finance-basics.

Methodology
Mutual of Omaha surveyed 400 U.S. consumers ages 18–77 from March 14-17, 2023, using the quantilope survey platform.

Respondents rated their confidence in their own and their family’s financial future both today and 10 years from now. They also chose from a list of five statements they believed best described their financial future ranging from “I haven’t given it much thought” to “I’ve arrived. My financial future is protected.”

Responses to these three questions were combined to create the Protection Confident and Protection Threatened segments.