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New “2022 Wealth & Wellness Index” Shows Many Americans Less Confident in Their Finances and the Economy Entering Third Year of the Pandemic

New "2022 Wealth & Wellness Index" Shows Many Americans Less Confident in Their Finances and the Economy Entering Third Year of the Pandemic
Written by publishing team

Despite the strength of the stock market and the recovery of the economy, a new survey finds that economic confidence among many Americans is declining, with the financial position significantly reduced since the beginning of 2021 but a top priority in 2022

Redwood Shores, CA, January 10, 2022(BUSINESS WIRE)–As we begin the third year of the COVID-19 pandemic, the US economy is making a remarkable comeback after enduring two turbulent years. Nearly 80% of the jobs lost by the pandemic have been restored, unemployment rates are back to normal and today’s job seekers have the upper hand.

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However, Americans’ opinions about their financial health are declining, and many consumers do not feel confident about their current financial situation or the economy. According to a new year 2022 Wealth and Wellness Index Released today by Empower Retirement and Personal Capital’s Hybrid Wealth ManagerAnd only 34% From US consumers surveyed said they were “financially healthy,” down 14% compared to the question in March 2021 (48%). The survey, conducted by the Harris Poll, found that economic confidence among respondents remains relatively low at 40%, down 2% from the previous year and at 12% since the start of the pandemic.

“It is a fact of life that forces in the economy will affect how confident people are in their finances,” said Edmund F. Murphy, President and CEO of Empower. “Periods like this are opportunities for savers to become more involved in their finances and seek the advice they need to help reassure them in their financial plan or set them on a path to help restore confidence.”

So, what makes so many Americans feel less confident in their finances and the economy right now, despite the positive macroeconomic indicators?

“It’s a complicated picture to describe what’s happening to the economy,” says Craig Burke, chief investment officer at Personal Capital. “The job market is strong and retail growth is trending upwards, but we’re also dealing with recent market volatility and record high inflation. It’s worrying for many.”

Despite this relatively recent drop in confidence, US consumers surveyed reported feeling optimistic about their long-term financial future. According to the study’s main indicators of financial wellness, many feel hopeful and optimistic (40%) about their path towards improving their financial health.

Americans also prioritize financial goals in 2022. When asked about their top New Year’s resolution, paying off personal debt (37%) and saving for retirement (36%) now override traditional common goals like exercising more (33%) and losing weight (28%) .

“The fact that paying down debt is a higher priority than exercising shows that many people want to improve their financial health, and it is clear that financial confidence is intrinsically linked to overall health and wellness,” says James Burton, Head of Marketing at Personal Capital. “Americans are seeking financial advice, and we’re not seeing this boom in financial planning changing anytime soon. In the past year, we’ve seen an 88% increase in net assets for new clients, excluding market gains, and we’re well prepared to meet rising demand this year” .

For more information on the 2022 Wealth and Wellness Index, see the results overview here.

About Empower

Headquartered in Metro Denver, Empower manages nearly $1.1 trillion in assets1 It has over 12.6 million pension plan subscribers and is the second largest pension plan registrar in the country by total number of subscribers.2 Empower serves all segments of the employer-sponsored retirement plan market: Government Plans 457; Small, medium, and large business 401(k) clients; Non-Profit Entities 403(b); private branded bookkeeping clients; and IRA clients. Personal Capital, a subsidiary of Empower, is a leading hybrid wealth management company.

For more information, please visit enable.com and connect with us on Facebook, Twitterand LinkedIn and Instagram.

About Personal Capital, Empowerment Company

Personal Capital is a leading digital wealth management company delivered remotely and helping people transform their financial lives through technology and advisory services. The company’s cutting-edge tools and technology provide consumers with a comprehensive financial picture and are used by more than 3.1 million people to track $1.3 trillion in account assets (as of 11/30/21). Wealth management advisors provide expert guidance, and customized strategies, based on a personal understanding of an investor’s financial picture and goals. For more information, please visit www.personalcapital.com or connect with us on Facebook, Twitter or LinkedIn.

Advisory services are provided for a fee by Personal Capital Advisors Corporation, a wholly owned subsidiary of Personal Capital Corporation. Personal Capital Advisors Corporation is an investment advisory firm registered with the Securities and Exchange Commission (“SEC”). SEC registration does not imply a certain level of skill or training. Investing involves risks. Past performance is not a guarantee or indication of future returns. The value of your investment will fluctuate, and you may win or lose money.

1 Ranking of the 2020 Pensions and Investments Survey as of April 2021.

2 As of September 30, 2021. The information refers to the business of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York and GWFS Equities, Inc. Administration (AUA) was $1.125 billion. AUA is a non-GAAP measure and does not reflect the financial stability or strength of the company. GWLA’s total legal assets are $76.1 billion and total liabilities are $73.1 billion. GWLANY has total legal assets of $4.2 billion and total liabilities of $3.3 billion.

Securities offered and/or distributed by GWFS Equities, Inc. , Member of FINRA/SIPC. GWFS is a subsidiary of Empower Retirement LLC; Great-West Funds, Inc. ; and Registered Investment Adviser, Advised Assets Group, LLC. Investing involves risks, including the potential for loss of capital. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

Copyright © 2022 Empower Retirement LLC. All rights reserved.

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Contacts

Media contact:
Enabling retirement
Stephen Gulik – 617-417-4408 – Stephen.Gawlik@empower-retirement.com
Monica Mendoza – 2460-373-719 – Monica.Mendoza@empower-retirement.com

personal capital
Jacqueline Quassini, Director of Public Relations
press@personalcapital.com

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