Working with a financial advisor improves understanding of inflation, likelihood to consider refinancing debt
-D.A. Davidson & Co. announced survey results revealing that two-thirds (67%) of individuals with debt are not planning to refinance or consolidate their debt in the next year, possibly missing an important financial savings opportunity amidst the current economic and interest rate environment. That said, working with a financial advisor can help – as 50% of those with debt who work with a financial advisor are making this consideration. Additionally, individuals who work with a financial advisor are more likely to say they fully understand the impact of rising rates and inflation on their personal finances compared to those who do not (85% vs. 67%).
Latest Fintech Insights: Kiwibank Accelerates Real-Time Services With New ACI Worldwide SaaS Solution
“Especially in this inflationary environment, working with a financial advisor and making financial resolutions at the beginning of the year, or really at any new chapter, can be critical to achieving your financial goals.”
“With markets off to a choppy start in 2022 and rate hikes on the horizon, inflation is top of mind for many investors,” said Andrew Crowell, Vice Chairman of Wealth Management at D.A. Davidson. “Especially in this inflationary environment, working with a financial advisor and making financial resolutions at the beginning of the year, or really at any new chapter, can be critical to achieving your financial goals.”
Some Groups Better Positioned to Understand Inflation
While most people (72%) feel they fully understand the impact that rising rates and inflation can have on their personal finances, significantly more males report fully understanding the impact than females (77% vs. 67%).
The percentage of individuals who feel they fully understand the impact of rising rates and inflation on personal finances increases with age: Baby Boomers (79%), Gen X (70%), Millennials (69%), Gen Z (62%). Perhaps it’s because of this increased understanding, that Baby Boomers are most concerned with paying off debt in 2022, while younger generations’ biggest priority is saving for the future. In a similar vein, older generations are more concerned with budgeting amid rising inflation in 2022 compared to their younger counterparts: Baby Boomers (19%), Gen X (12%), Millennials (7%), Gen Z (5%).
Browse The Complete News About Fintech : Sila Offers Customers Digital Debt Collection Services Through New TrueAccord Partnership
Making New Year’s Financial Resolutions Key to Achieving Financial Goals
More than half (51%) of respondents did not have or create a written financial plan in 2021. Of those who did, however, younger generations were more likely to have a written financial plan than older generations: Gen Z (67%), Millennials (59%), Gen X (43%), Baby Boomers (37%). Consequently, Gen Z and Millennials were more likely to have achieved all or some of their financial goals last year compared to Baby Boomers (58% vs. 50% vs. 34%). Following the same pattern, half of Millennials made a New Year’s resolution related to their finances this year, followed by Gen Z (43%) and Gen X (33%), with only 18% Baby Boomers doing the same.
Males were significantly more likely to make a financial resolution for 2022 than females (39% vs. 29%) and were also significantly more likely to report achieving some or all of their financial goals in 2021 (49% vs. 37%).
Those who work with a financial advisor were significantly more likely to make a financial New Year’s resolution than those who do not (45% vs. 30%), and over three-quarters (76%) of people who work with a financial advisor said they achieved all or some of their financial goals for 2021 compared to a third (31%) of people who did not work with a financial advisor.
Read More About Fintech News : John Marshall Bank Hires Graziella Brenneman To Strengthen Small Business Lending Efforts
[To share your insights with us, please write to sghosh@martechseries.com]
