New York Life Wealth Watch 2024 Outlook (2024)

New York Life|January 23, 2024

Over half of Americans report meeting 2023 savings goals, especially those with a financial strategy; younger generations most likely to report seeking guidance from a financial professional.

NEW YORK -New York Life’s latest Wealth Watch survey finds financial resiliency among American adults, even in the face of high interest rates and rising credit card debt. Two-thirds of adults (64%) feel confident in their ability to meet their financial goals, and over half (52%) of adults saved the amount they wanted or more in 2023. Adults aimed to save $7,435.57 on average and actually saved $6,138.06 – marking an improvement from 2022, when adults aimed to save $5,437 and saved $5,011 on average.

A key factor in adults’ financial confidence and ability to reach their goals is the presence of a financial strategy. In fact:

  • 63% of adults with a financial strategy met or exceeded their savings goal for 2023, compared to only 37% of those without a financial strategy.
  • Adults with a financial strategy feel twice as confident in their ability to meet their financial goals compared to those without a strategy (81% vs. 41% respectively).
  • 83% of adults with a financial strategy say they are similarly or more prepared for a financial emergency than their peers compared to 43% of those without a financial strategy.
  • Adults with a financial strategy are more likely to say they have started saving for retirement than those without (58% vs. 18% respectively).

“Our data clearly show that having a financial strategy is a key factor in not only feeling confident about reaching one’s goals, but in actually reaching them. Younger generations are reporting strong engagement with their financial strategies. Gen Zers and Millennials were more likely to report reviewing their strategy on a weekly basis and seeking guidance from a financial professional in 2023 than other demographic cohorts,” said Donn Froshiesar, Head of Consumer Insights at New York Life. “But despite evidence of strong habits, debt is still getting in their way. Gen Zers ranked credit card debt as the second most impactful factor on their finances in 2023 behind inflation.”

American adults report confidence in managing debt and preparing for financial emergencies, and over half met their 2023 savings goals – but women and Gen Xers continue to report lower levels of confidence than other demographic cohorts.

  • The top three words adults used to describe their finances at the end of 2023 heading into 2024 are: stressed (36%), hopeful (35%), and anxious (31%).
    • Those with a financial strategy are more likely to feel hopeful, on-track and happy towards the current state of their finances compared to those who don’t have a financial strategy in place.
  • Millennials led the pack on 2023 savings, saving $9,299.45 compared to the $6,138.06 adults saved on average.
    • Gen Zers saved $6,440.67, Gen Xers saved $5,132.20, and Baby Boomers saved $4,059.72 on average.
  • American adults feel well matched against their peers in terms of managing debt and being prepared for a financial emergency:
    • 76% of adults feel more or similarly able to manage their debt compared to their peers.
    • Two-thirds of adults (66%) feel more or similarly prepared for a financial emergency compared to their peers.
  • When it comes to retirement, adults on average believe they will be able to retire at 64 years old, with a majority (74%) feeling confident they will be able to retire at this age.
    • 62% of adults also feel that they are more or similarly prepared for retirement compared to their peers.
    • Still, only 4-in-10 adults (41%) report that they currently have retirement savings and only a fifth (21%) say they have a retirement strategy.
  • Despite high levels of personal financial confidence among adults, women and Gen Xers continue to show less confidence than other demographic groups:
    • Only 57% of women are confident they will meet their financial goals, compared to 75% of men.
    • Gen Xers reported the lowest level of confidence that they will meet their financial goals (55%), compared to Gen Zers (76%), Millennials (64%), and Baby Boomers (64%).
    • Married women feel less confident about their finances than their male counterparts (59% vs. 77% respectively).

Despite high confidence levels and increased savings, American adults continue to face challenges, including higher costs of living and rising credit card debt.

  • Among those with credit card debt, the average total debt owed is $7,931.80 – an increase compared to 2022, when the average owed was $6,320.98.
    • Although most adults with credit card debt are contributing the same or more each month than they did in 2022 to pay off their debt (77%), around a quarter (23%) report contributing less.
    • On average, those with credit card debt report contributing $363.07 per month toward paying it off – slightly less than what adults reported in 2022 ($430 per month).
    • 1-in-4 women (25%) and 30% of Gen Xers with credit card debt report contributing less to paying down their credit card debt in 2023 than 2022.
  • More than half of adults (62%) report inflation as their top financial concern that may impact their finances heading into 2024, followed by rising interest rates (29%), and potential recession (28%).
    • These are the same concerns as those reported in late 2022. At that time, 68% of adults were concerned about inflation, 26% worried about a possible recession, and 29% were concerned about rising interest rates.
  • 4-in-10 adults (43%) expect their living expenses to be higher in the first 6 months of 2024 than in 2023.
  • An overwhelming majority of adults (85%) reported their finances were impacted adversely in 2023.
    • 58% of adults reported that inflation impacted their finances the most, followed by credit card debt (28%), and the cost of housing (26%).

“Although economic data point toward growth – and the findings of this Wealth Watch 2024 Outlook are fairly positive – consumer confidence is hovering near 2008-2009 levels,” said Froshiesar. “For a variety of reasons, adults are not experiencing a strong economy in their day-to-day financial lives, and we are seeing acute challenges among specific demographic groups. Specifically, women and Gen Xers are showing less confidence in achieving their financial goals compared to men and other generational groups, as well as more difficulty managing credit card debt.”

Despite broader financial challenges, nearly half of adults report having emergency savings and younger generations in particular are taking a proactive approach to financial strategies moving into the New Year.

  • Two-thirds of adults (66%) report having a financial strategy in place, and almost half of adults (46%) report reviewing their financial strategy or budget at least monthly.
  • Just under half of adults (48%) have emergency savings, with adults having an average of about $15,027.74 set aside.
    • Men are more likely to have funds or savings set aside compared to women (55% vs 41% respectively).
    • Millennials (51%) and Baby Boomers (51%) are more likely to have funds or savings set aside compared to other generations (Gen Zers: 44% and Gen Xers: 43%).
  • 73% of adults took an action as a response to factors impacting their finances in 2023 – with cutting back on discretionary spending (48%) and making changes to their budget or financial strategies (31%) being the top ways.
    • Gen Zers and Millennials were more likely to develop a secondary income stream (20% for both) or seek guidance from a financial professional (11% and 15% respectively) compared to other generations as a response to factors impacting their finances in 2023.
  • Two-thirds of adults with debt (64%) report adjusting their strategy for managing their debts in the past year. The most common change has been to pay more than the minimum per month to manage their debt (28%).
    • Gen Zers (79%) and Millennials (74%) are more likely to report their strategy has changed in the past year compared to older generations.
  • Financial goals moving into 2024 closely mirror those reported for 2023:
    • 7-in-10 (72%) adults currently have a short-term financial goal, with the top three goals reported being paying for a vacation (28%), buying themselves a specific product they want (24%), and buying a car (23%).
    • 8-in-10 (80%) adults currently have a long-term financial goal for 2024, with building their emergency funds (41%) and paying off credit card debt (32%) being the most common.

“Moving into 2024, individuals report maintaining the same long-term financial goals they were working towards entering 2023. It’s encouraging to see that even in a challenging economic environment, Americans are maintaining focus on saving, managing debt and building a plan for the future. This will help them weather financial shocks or unexpected expenses in the future and set them up for longer-term financial success. It’s also encouraging to see that Gen Zers aren’t lagging too far behind other demographic cohorts in this area,” said Froshiesar. “As younger generations continue to focus on building strong foundations for their lifelong financial journeys, having a holistic financial strategy in place, and revisiting that strategy on a regular basis with the guidance of a financial professional, will be pivotal.”

ABOUT WEALTH WATCH

Wealth Watch is a recurring survey from New York Life that tracks Americans’ financial goals, progress toward those goals and feelings about their ability to secure their financial futures, identifying key themes and trends that are emerging about topics like retirement planning, the role of protection-oriented solutions and the importance of financial guidance.

SURVEY METHODOLOGY

This poll was conducted between November 22 – 26, 2023 among a sample of 2,202 Adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on gender, age, race, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

ABOUT NEW YORK LIFE

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest1mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments, and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.2

1Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/5/2023. For methodology, please seehttp://fortune.com/fortune500/.

2Individual independent rating agency commentary as of 11/17/2023: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).

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As someone deeply immersed in the field of personal finance and wealth management, I can provide insights into the key concepts highlighted in the New York Life's Wealth Watch survey dated January 23, 2024. My extensive knowledge in financial matters allows me to analyze and interpret the findings comprehensively.

The survey reveals several crucial trends and insights:

  1. Financial Resiliency among Americans:

    • Over half of Americans report meeting their 2023 savings goals.
    • Two-thirds of adults feel confident in their ability to meet financial goals despite challenges such as high interest rates and rising credit card debt.
  2. Role of Financial Strategy:

    • Having a financial strategy significantly impacts financial outcomes. 63% of adults with a financial strategy met or exceeded their savings goals, compared to 37% without a strategy.
    • Adults with a financial strategy are twice as confident in meeting their financial goals (81% vs. 41%) and feel better prepared for financial emergencies (83% vs. 43%).
  3. Generational Trends:

    • Younger generations, particularly Gen Zers and Millennials, are more engaged in financial strategies.
    • Millennials led in savings, putting away $9,299.45 on average, while Gen Zers saved $6,440.67.
  4. Debt Management and Concerns:

    • Despite high confidence levels, debt remains a challenge. Credit card debt is a significant factor affecting financial well-being.
    • Gen Zers ranked credit card debt as the second most impactful factor on their finances in 2023, following inflation.
  5. Gender and Generational Disparities:

    • Women and Gen Xers exhibit lower confidence levels compared to men and other generational groups.
    • Only 57% of women are confident in meeting their financial goals, while Gen Xers reported the lowest confidence (55%).
  6. Economic Concerns:

    • Inflation is the top financial concern for 62% of adults, followed by rising interest rates (29%) and a potential recession (28%).
  7. Emergency Savings and Financial Strategies:

    • Nearly half of adults have emergency savings, with an average of about $15,027.74 set aside.
    • Two-thirds of adults report having a financial strategy, with 46% reviewing it monthly.
  8. Actions Taken in Response to Financial Factors:

    • 73% of adults took action in response to factors impacting their finances in 2023.
    • Gen Zers and Millennials were more likely to develop a secondary income stream or seek guidance from a financial professional.
  9. Future Financial Goals:

    • The financial goals for 2024 align closely with those of 2023, with a focus on short-term goals like vacations and long-term goals such as building emergency funds.
  10. Survey Methodology:

    • The survey, conducted online, interviewed 2,202 adults between November 22 – 26, 2023, with a margin of error of plus or minus 2 percentage points.
  11. About New York Life:

    • New York Life, founded in 1845, is the largest mutual life insurance company in the U.S. It provides life insurance, retirement income, investments, and long-term care insurance.

In summary, the Wealth Watch survey provides a comprehensive view of Americans' financial well-being, highlighting the importance of financial strategies, generational differences, and ongoing economic concerns. The insights presented underscore the significance of proactive financial planning and the role it plays in achieving financial goals.

New York Life Wealth Watch 2024 Outlook (2024)

FAQs

What is the dividend for New York Life in 2024? ›

New York Life's Industry-Leading Financial Strength Ratings Affirmed by All Major Ratings Agencies. New York Life declares company-record $2.2 billion dividend for 2024. Cost of caregiving burdens nearly half of Sandwich Generation, finds New York Life Wealth Watch survey.

What is New York Life Investments ranked? ›

2023. On June 12, 2023, New York Life Investments was ranked #25 in Pensions & Investments' Largest Money Managers 2023 for the time period 12/31/21–12/31/22 moving up two spots from #27 last year. (Managers are ranked by total worldwide institutional assets under management.

What is the New York Life Wealth Watch survey? ›

Wealth Watch is a recurring survey from New York Life that tracks Americans' financial goals, progress toward those goals and feelings about their ability to secure their financial futures, identifying key themes and trends that are emerging about topics like retirement planning, the role of protection-oriented ...

Is New York Life a Fortune 100 company? ›

Fortune Magazine's Fortune 500. We rank #71 on the prestigious 2023 "Fortune 500" list. Once again we retained our title as the largest mutual life insurance company in the U.S. and in the "Fortune 100". Seramount's Best Companies.

How often does New York Life pay dividends? ›

Typically, this is done quarterly, but it can be done monthly or yearly as well. Dividends can be paid out as cash or issued as additional shares.

How long has New York Life paid a dividend? ›

Dividends on whole life insurance are not guaranteed but New York Life has paid them every year since 1854.

Where does New York Life rank on Fortune 500? ›

New York Life ranked among the top Life Insurance companies of 2023 in a survey of 2,000 life insurance customers by Insure. The top-ranked companies offer competitive pricing and strong customer service. We rank #72 on the 68th running of the prestigious Fortune 500 list.

Which is better Mass Mutual or New York Life? ›

MassMutual: Best overall. Guardian: Best for applicants with a history of HIV. Northwestern Mutual: Best for consumer experience. New York Life: Best for high coverage amounts.

What is best life insurance to build wealth? ›

Permanent life insurance.

This insurance is what the name suggests: it's permanent. If you pay the premiums every month, you'll have it until you die, whether that's five years from now or 50. Your beneficiaries will receive a payout after you die, and while you're alive, the policy generates a cash value.

Is New York Life trustworthy? ›

With more than 175 years of experience, an A++ AM Best rating for financial strength, expert agents, and highly customizable benefit options, New York Life has a track record of providing solid policies and is a reputable insurance provider.

Is NY Life annuity safe? ›

It depends on the type of annuity you purchase. While all investments carry some level of risk, fixed deferred annuities are fairly safe because they come with a guaranteed minimum interest rate. This means that New York Life assumes all the investment risk, so your payout is not affected by market fluctuation.

How much surplus does New York Life have? ›

In addition to posting a company record of $31.9 billion in surplus and $3.1 billion in operating earnings, New York Life reported record results of $16.7 billion in policy owner benefits and dividends paid, and $1.2 trillion in individual life insurance in force in the U.S. These superior financial results demonstrate ...

Does Fidelity own New York Life? ›

Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc., are the distributors; they are not affiliated with any New York Life Insurance Company. Protect yourself from market downturns, and enjoy growth potential.

What company owns New York Life? ›

A mutual insurance company, New York Life is owned by its policyholders and has no outside shareholders. As a mutual, New York Life distributes a portion of its earnings to eligible policyholders as annual dividends. As of 2016, the company has paid a dividend every year since 1854.

Who is New York Life owned by? ›

We answer to our policy owners, not to Wall Street

New York Life is a mutual company, meaning we are not traded on the stock exchange, we don't have shareholders, and we don't answer to Wall Street. We answer to and operate for the benefit of current and future policy owners.

What is the dividend for MassMutual in 2024? ›

Three in four MassMutual policyholders choose to apply their dividends to add to a policy's coverage. Over the long term, dividends contribute to the growth of a policy's cash value and death benefit, the company said in its news release. MassMutual said it set 6.1% as the dividend interest rate for the 2024 payout.

What is the ex-dividend date for NYCB? ›

New York Community Bancorp, Inc.'s ( NYCB ) ex-dividend date is February 13, 2024 , which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment. New York Community Bancorp, Inc. ( NYCB ) pays dividends on a quarterly basis.

What is final dividend for the year? ›

The final dividend is declared at a company's annual general meeting for the year. This amount is calculated after all financial statements are recorded. Retained earnings are a firm's cumulative net earnings or profit after accounting for dividends. They're also referred to as the earnings surplus.

What are future dividend payments? ›

What is a dividend future? A dividend future is a forward contract traded on an exchange. It allows investors to take a long or short position on the amount of dividends paid by a company to its shareholders for a specific maturity date in the future.

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