Recently on MoneyTips.com, we presented our survey on the financial health of Baby Boomers. Today, we report on another key demographic group, the Middle Class. Survey results are shown in the infographic above.
The first shocking result is the same as for Baby Boomers: that No Financial Plan is THE Plan! A staggering 37% of middle-class Americans have no real plan in place to achieve their financial objectives.
Not surprisingly, the study also revealed that most middle-class Americans (53%) are Falling Short in Meeting their Financial Objectives. Clearly, it’s hard to meet your goals when you don’t have a plan. Whether it is saving for a new home, car, wedding, or other financial milestone, a larger majority, 58% say they are not on target. Two-thirds of them are worried they are not saving enough to live comfortably in retirement.
Commenting on this finding, Pacific Palisades, California, Money Manager Alex Bentley observed, “A quiet revolution in this country has shifted the responsibility for funding retirement from corporations to individuals. Unfortunately, most Americans have not yet adjusted to this new reality.”
In addition, 43% report discomfort with their standard of living. Among homeowners, 45% believe that they have the wrong financing in place.
Like all parents, the middle class strives to make things better for their children. But lack of planning could easily thwart their dreams for the next generation. Two-thirds of our middle-class survey respondents do not have an estate plan, while 58% confirm they are not saving enough for their kids’ college education.
What, if anything, can improve this situation and help Americans restore their financial health? For starters, people need regular access to practical, unbiased financial information. Next, they need to apply what they learn in a methodical and disciplined way. According to Marc Diana, CEO of MoneyTips.com, “Spending time to make informed decisions about money management, borrowing, investing and savings will help you make the most out of what you have and save more in the long run.”