Despite a strong stock market and recovering economy, new survey finds economic confidence for many Americans is on the decline, with financial health seen to be significantly lower from early 2021 but a top priority in 2022

REDWOOD SHORES, California, January 10, 2022– (BUSINESS WIRE) – As we enter the third year of the COVID-19 pandemic, the U.S. economy is making a remarkable comeback after going through two tumultuous years. About 80% of the jobs lost due to the pandemic have been recovered, unemployment rates have normalized and today’s job seekers have the upper hand.

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Yet Americans’ opinions about their financial health are languishing, and many consumers feel unconfident about their current financial situation or the economy. According to a new annual bulletin Wealth and Well-Being Index 2022 released today by pension service provider Empower Retirement and affiliate hybrid wealth manager Personal Capital, only 34% of American consumers surveyed say they are “in very good financial health”, a decrease of 14% compared to the question asked in March 2021 (48%). The survey, conducted by the Harris Poll, found that economic confidence among respondents also remains relatively low at 40%, down 2% from the previous year and 12% since the start of the pandemic.

“It is a fact of life that the forces of the economy are going to have an impact on the confidence people have in their finances,” said Empower President and CEO Edmund F. Murphy III. “Times like this present opportunities for savers to get even more involved in their finances and seek the advice they need to reassure them in their financial plan or put them on the path to renewed confidence. . “

So what is it that makes many Americans feel less confident about their finances and the economy right now, despite positive macroeconomic indications?

“It’s a complicated picture to describe what is happening to the economy,” said Craig Birk, chief investment officer at Personal Capital. “The job market is strong and retail growth is accelerating, but we are also facing recent market volatility and record inflation. This is troubling to many.”

Despite this relatively recent drop in confidence, US consumers surveyed say they are optimistic about their long-term financial future. According to the study’s key indicators of financial well-being, many feel optimistic and hopeful (40%) about their journey towards optimizing their financial health.

Americans also prioritize their financial goals in 2022. When asked what their top New Year’s resolution is, paying down personal debt (37%) and saving for retirement (36%) now traditionally exceeds goals. like getting more exercise (33%) and losing weight. (28%).

“The fact that paying down debt is a higher priority than exercise shows that many people want to improve their financial health, and it is clear that financial confidence is intrinsically linked to overall health and well-being. “said James Burton, Director of Marketing for Personal Capital. “Americans are looking for financial advice and we don’t expect this boom in financial planning to change anytime soon. Over the past year, we have seen an 88% increase in new customer net assets, excluding market gains, and we are fully prepared to meet growing demand this year.

For more information on the ‘2022 Wealth & Wellness Index’, see an overview of the results here.

About empowerment

Based in the Denver metro, Empower manages around $ 1.1 trillion in assets1 for more than 12.6 million pension plan members and is the second largest registrar of pension plans in the country by total number of plan members.2 Empower serves all segments of the employer sponsored pension plan market: 457 government plans; small, medium and large business customers 401 (k); 403 (b) non-profit entities; private label record keeping clients; and IRA clients. Personal Capital, a subsidiary of Empower, is a leading hybrid wealth manager.

For more information, visit empower.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.

About Personal Capital, an Empower Company

Personal Capital is a leading remote delivery digital wealth management company that helps people transform their financial lives through technology and advisory services. The company’s cutting-edge tools and technology give consumers the whole financial picture and are used by more than 3.1 million people to track $ 1.3 trillion in account assets (as of 11/30/21) . Its wealth management advisors provide expert advice and personalized strategies, based on a personal understanding of an investor’s financial situation and goals. For more information, please visit www.personalcapital.com or connect with us on Facebook, Twitter or LinkedIn.

Advisory services are provided for a fee by Personal Capital Advisors Corporation, a wholly owned subsidiary of Personal Capital Corporation. Personal Capital Advisors Corporation is a registered investment advisor with the Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training. Investing involves risks. Past performance is not a guarantee or indication of future returns. The value of your investment fluctuates and you can make or lose money.

1 Ranking of the Pension & Investments 2020 survey with defined contributions in April 2021.

2 As at September 30, 2021. Information refers to the activities of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York and GWFS Equities, Inc. Total assets GWLA’s consolidated according to (AUA) were $ 1.125 billion. AUA is a non-GAAP measure and does not reflect the financial stability or soundness of a company. GWLA’s statutory assets are $ 76.1 billion and liabilities are $ 73.1 billion. GWLANY’s statutory assets total $ 4.2 billion and liabilities total $ 3.3 billion.

Securities offered and / or distributed by GWFS Equities, Inc., member of FINRA / SIPC. GWFS is a subsidiary of Empower Retirement, LLC; Great-West Funds, Inc .; and registered investment advisor, Advised Assets Group, LLC. Investing involves risks, including possible loss of capital. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

© 2022 Empower Retirement, LLC. All rights reserved.

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Contacts

Media contacts:
Empower retirement
Stephen Gawlik – 617-417-4408 – [email protected]
Monica Mendoza – 719-373-2460 – [email protected]

Personal capital
Jacqueline Quasney, Director of Public Relations
[email protected]