A strong budgeting plan can be a significant part of a financial strategy, and there may be more people who are doing this, despite outside influences that could potentially limit them.
Close to 90 percent of individuals think they understand how to make important financial decisions, according to a report from Allstate and the National Journal. Close to 75 percent felt that planning their retirement was easy to understand, while 77 percent said the same about purchasing a home and 64 percent noted this regarding creating an inheritance.
“Despite the headwinds we continue to face, the resilience of the American people is alive and well,” said Sanjay Gupta, executive vice president of marketing, innovation and corporate relations for Allstate. “It is this American trait and tradition of individual responsibility – more specifically, the ability to control one’s financial decisions and destiny – that makes this country unique and continues to be the foundation of our culture, political, and financial system.”
However, understanding and doing are two different things. A total of 44 percent explained they are not saving enough money for retirement, while just 42 percent are actively putting funds into a plan such as an IRA or 401(k).
Less than half of those polled noted that they are compiling an emergency fund for their finances, the report said. Meanwhile, nearly 55 percent are keeping up with debt payments, and one-fifth are actually ahead of the curve on this measure.
Retirement struggles remain for some
There are still some pitfalls for many Americans who are trying to secure a comfortable retirement.
Nearly 60 percent of those who consider themselves “middle class” noted that they value covering their expenses each month more than anything else, according to a report from Wells Fargo. Less than 15 percent noted that they value saving for retirement over everything.
“We do this survey every year and for the past three years, the struggle to pay bills is a growing concern and the prospect of saving for retirement looks dim, particularly for those in their prime saving years,” said Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust. “We’d like to try to help people find the silver lining and create a path to retirement savings.”
Nearly 50 percent are unsure if they will be able to save properly for retirement, the report added. Approximately 34 percent feel they need to work until they turn 80 to retire correctly.