The Roadblocks to Financial Health

In a recent study published by MX, we learned that only 46% of consumers feel confident about their financial future. The research shows key themes around savings, retirement, and debt that may be causing this money stress:

Dealing with Unexpected Expenses

Having an emergency savings account is an important factor in financial peace. However, only 60% of consumers have emergency savings. In addition to that, only 40% of consumers agree that they are confident they can cover any unexpected expenses. Generationally, Gen Z is on the thinnest ice, with only 17% saying they have more than $5,000 saved and 53% stating that they have $1,000 or less set aside in savings. In a time where the price of goods and services are increasing, along with interest rates, having a decent-sized savings account can feel impossible.

Retirement

Most people look forward to the day when they can retire comfortably with the money they’ve been saving. The problem is, 37% of consumers (cross-generational) say that they don’t have retirement savings. No wonder only 38% of consumers agree that they are confident they will be able to retire comfortably. What’s worse is that number increases to 40% of Baby Boomers, who are the closest to retirement age.

Debt

Here’s the breakdown of debt from our most recent research report:

With so many consumers struggling with financial wellness, what can financial institutions and fintechs do to help alleviate stress? Personalized, proactive support in these key areas can be the catalyst to better financial health for consumers. This isn’t just a pipe dream either — previous research from MX shows that 63% of consumers want their financial services providers to proactively help them better manage their finances. If there was ever a time for financial institutions and fintechs to create value and generate loyalty, it would be now during a time when every dollar matters.