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Data & Research March 10, 2025
Americans Plan to Increase Savings Amid Concerns About Affordability
Nearly seven in 10 mass affluent respondents (an income level at or above $90,000 annually) plan to increase their savings by $500 or more per month.
Reported by PLANADVISER staff
Many Americans plan to increase their monthly saving in 2025, as they change financial habits to respond to economic concerns, according to a recent Equitable survey.
Specifically, four in 10 respondents intend to increase their savings by $500 or more. This percentage was higher among mass affluent respondents (an income level at or above $90,000 annually), with nearly seven in 10 indicating they plan to increase their savings by $500 or more per month.
The survey, fielded in early December 2024, found four in five (80%) of Americans—regardless of income level—are worried about the affordability of everyday living costs. Six in 10 respondents view the economy as highly volatile. Americans continue to report inflation as the most common obstacle, citing it more than twice as much as other issues. Equitable notes this has stayed relatively consistent in each quarterly survey over the past year.
With concerns about purchasing power, comes interest in lifetime income, the survey found. In fact, nearly nine in ten (88%) of those surveyed said they value features that would provide a guaranteed payment at a regular interval for the rest of their life. Not surprisingly, however, less than half of respondents reported being confident about their understanding of annuities.
“It’s encouraging to see so many people aiming to improve their financial habits. Yet, with concerns about affordability, inflation and the economy still weighing heavily on many Americans, transforming those intentions into actions can feel daunting,” said Nick Lane, President of Equitable. “This is where a financial professional can help by offering guidance to navigate today’s ever-changing and uncertain landscape.”
Financial professionals are going to be in demand, Equitable believes, especially as trillions of dollars are expected to flow to today’s pre-retirees, Gen Xers and Millennials by 2030. Millennials (both men and women) and surviving spouses (predominantly pre-retiree women) are expected to take control of the bulk of the assets changing hands. Eight in 10 of those surveyed for a separate Equitable study about the great wealth transfer said they plan to work with a financial adviser to help manage their new wealth.