Top 5 Financial Worries for 2023
Many of us are happy to say goodbye to a difficult year, 2022. However, 2023 looks set to be challenging in its own right. The cost of living has gone up and inflation has made people anxious about their financial stability and their retirement.
According to research by John Hancock, in the third quarter of last year, one in four retirement savers said that they were often stressed about their finances. That number is seven percent higher than in the first quarter of last year. (18 percent).
If you are saving for retirement, the cost-of-living increase and inflation are going to be a concern. Fifty-eight percent of Americans have experienced stress or depression in the last year because of their finances. Seventy-two percent have experienced moderate to extreme stress in the last six months alone.
Here are the top 5 financial worries the study found:
- Economic conditions: The cost of living has increased significantly, and this is causing people to worry not only about current bills but their retirement as well.
- Retirement savings: Retirement savings are a real concern, and many Americans do not have enough savings.
- Credit card debt: Credit cards are a tempting way to pay for things you need or want. However, credit card debt can quickly become crippling. High-interest rates and ease of access to debt can cause havoc with your financial situation.
- Emergency savings: Having emergency savings is an essential part of a sound financial plan. It can be tempting to use these funds for other things, but it is vital to keep that emergency fund topped up so that if you are faced with a sudden emergency, it is not a financial disaster.
- Overall, current financial situation: Having a good solid financial plan and understanding your money and investments is the first step to having a good financial situation. Folks who are concerned about their overall financial situation should seek professional advice and get on top of it.
“The sooner you make a plan the better it will be in the long run,” says Richard Eden senior vice president of David Lerner associates, “Make sure you don’t make risky investments and stick to the sensible middle ground of investing.”
During the pandemic, people could save more money because there wasn’t much to do or spend money on. Commutes were slashed and working from home meant some Americans could save more than they had in previous years. Even though many found themselves in a better financial situation than they had been previously, retirement savers are worried about their money.
The longer that you live in worry and fear the worse it will be. There is professional financial help there for you, just have to find an investment counsellor who can advise you.
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