The holiday season is a time to celebrate with friends and family, but it can also exacerbate financial stress. According to Magnify Money, on average Americans took on more than $1,000 in debt during the holidays last year; much of it was unplanned debt.
LIMRA research finds that household finances cause substantial stress for four in 10 Americans – one in five say it is a source of daily stress. Part of the issue is many Americans lack confidence in their financial knowledge. LIMRA research finds nearly half of Americans (48 percent) say they are not confident in their knowledge of investments/financial products.
The good news is eight in 10 consumers are interested in at least one area of financial education. Many who are interested in expanding their financial knowledge seek out information at their worksite. LIMRA research finds educational programs that focus on planning for medical and health care costs have the broadest appeal. Half of Americans say they want help with retirement planning and basic budgeting skills as well.
Beyond the workplace, LIMRA research finds advisors have a positive impact on Americans’ saving habits and financial confidence. LIMRA consistently finds Americans who work with an advisor are more likely to save in a retirement plan, save at a higher rate and have a higher level confidence that they will achieve their desired retirement lifestyle.
In the new LIMRA Unplugged episode, LIMRA Research Director Alison Salka and Chief Membership Officer Jim Kerley offer three ways financial companies and advisors can help Americans combat financial stress. To watch the video podcast please visit: Three Ways Advisors and Companies Can Help Combat Financial Stress