Issue link: https://resources.envestnet.com/i/1527494
Affluent Americans Are More Worried About Their Financial Future Feelings of financial security have waned year-over-year for Affluent Americans. While this may not be a big surprise, the extent to which the feeling of financial security dropped is quite surprising. When we did this study in 2022, 72% of Affluent Americans felt secure or very secure in their current financial situation. Today, only 59% of Affluent Americans felt secure or very secure in their current financial situation, a decrease of 18% year-over-year. Market volatility and global issues have created more anxiety and concern among investors, especially Affluent Americans. When investors feel worried, they benefit from more guidance, education, and expertise—such as that provided by financial advisors—to ensure they see the light at the end of the tunnel. The time to have these conversations is now. The national study found that Affluent Americans worried about their financial future more than ever before rising from 46% in 2022 to 62% in 2023. That's a jump of 35%. Both stats confirm what we already know: anxiety and concerns over the market have jumped significantly year-over-year. Interestingly, the study revealed that anxiety declines as affluence increases. Among Higher-Earners, 52% are worried about their financial future and for High-Net-Worth individuals, the number drops to 46%. So, while the overall Affluent population is clearly concerned about their financial future, the national study revealed that those with more assets or income seem generally calmer. As financial professionals prepare for client conversations, these details about a client's mindset are important to ensure a successful relationship. 72% of Affluent Americans felt secure or very secure in their current financial situation in 2022. 59% of Affluent Americans currently feel secure or very secure in their current financial situation, a decrease of 18% year-over-year. 62% of Affluent Americans are worried about their financial future more than before, rising from 46% in 2022. Strategy to Consider Talk with your clients about how they internalize their response to valuation changes in their portfolio, such as when their portfolio has a down day or quarter. It is important to remain a pillar of expertise and reassurance. Opportunity: Consider looking back at the inbound messages you received from clients during the last down market period. Are there clients you usually hear from who didn't reach out? Or some that reached out and now is a good time to follow up? Increasing the cadence of communication when people are nervous can be helpful in shoring up the confidence and connection that helps retain clients. How secure do you feel in your current financial situation? By Affluent Total Very secure Secure Neutral Not secure Not at all secure 19% 2023 40% 26% 12% 3% 25% 2022 47% 21% 6% 1% ©2023 Envestnet, Inc. and The Center for Generational Kinetics. All rights reserved. 5