Filed Under:Life Insurance, Life Planning Strategies

Americans cite top reason for caution in spending

Many Americans continue to spend money cautiously, new research shows.

Northwestern Mutual Life Insurance Co., Milwaukee, discloses this finding in the second release of data from its new survey, “2013 Planning and Progress Study.” Conducted by research firm Harris Interactive, the survey polled 1,546 Americans ages 25 and older.

Nearly one in four people (23 percent) of the survey respondents say they prefer to be more cautious but note they have “too much catching up to do.” And 22 percent say they’ve dipped into their retirement or savings in the past three years.

The respondents cite among the reasons for their heightened caution:

  • Unexpected expenses (52 percent)
  • Debt (47 percent)
  • Lack of effective planning for the long-term (37 percent)
  • Thirty-two percent are concerned about job security.

The subgroups most likely to say they’d “like to be more cautious, but have a lot of catching up to do” include:

  • Generation X (32 percent);
  • Adults with children under 18 (32 percent);
  • People with assets under $25K (35 percent).

When asked about their savings habits:

  • Four in 10 (39 percent) Americans say they plan to save more in the coming 12 months, up from 33 percent who said the same in 2010;
  • The youngest generations — Generation Y (56 percent) and Generation X (52 percent) — are more likely to say they will save more in the next 12 months, while older generations will save the same amount or less (Boomers — 33 percent, Mature — 16 percent);
  • Half (51 percent) of Americans say their approach to the money they have today is “to save and be careful, aim for long-term financial security”;
  • Only 14 percent say, “Spend. Enjoy what has been well-earned and live for today.”

When survey respondents were asked what changes they’ve made in the last three years regarding how they manage their money, the number one answer — reported by 30 percent of people — was saving more. Additionally, when asked to indicate their preferred approach toward achieving financial goals, the most common response — chosen by 34 percent — was “slow and steady wins the race.”

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting

Provided by LIFEHEALTHPRO

Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.