While it is important to have a balanced financial strategy, there may be some Americans who are looking at one aspect of their money management over all others. Focusing on one aspect may be helpful in the short-term, but it may be a bad idea to ignore other facets of money management.
Nearly 40 percent of wealthier Americans noted that retirement savings is the most important financial priority for them, according to a report from Bank of America. This was notably higher than the 26 percent of those who explained that getting rid of their debt was the priority. These priorities were reversed just five years ago.
However, some people may be already succeeding in paying off their debt levels. The report explained that nearly 45 percent of those polled noted that getting rid of their debt was the most notable accomplishment regarding their finances that they made in the past 12 months. Another 77 percent felt that it was important to look at the next year to help build their retirement savings, and this would be aided by using their tax return to help bolster this process.
Some Americans still worry about retirement possibility
While some wealthier Americans may be looking to get their financial strategies sorted when looking toward the future, others don’t feel that this is as realistic.
Nearly 60 percent of middle class consumers noted that they think their main financial goal is to pay off their bills, according to a report from Wells Fargo. This is notably higher than the 52 percent who said this last year.
Less than 45 percent noted that retirement is their priority, which made it the second-most common response, the report explained. Nearly half of those polled noted that they don’t think retirement is a realistic prospect in terms of it being comfortable. More than one-third explained that if they were able to retire, it would have to wait until they turned 80 years old, as they have not compiled enough money in their savings accounts.
“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.