In 2022, Americans reported saving an average of $5,011, with millennials reporting the greatest overall savings of $6,043.
In fact, 54% of adults met or exceeded their 2022 savings goals, a recent Wealth Watch survey conducted by New York Life found. The survey profiled 4,410 Americans on their annual savings, financial concerns, debts and 2023 financial goals.
Last year’s savings patterns mirrored those of 2021, as young adults continued to navigate the impacts of the Covid-19 pandemic and the potentially impending recession, Suzanne Schmitt, head of financial wellness at New York Life, tells CNBC Make It.
In light of the past three years, Americans are working to tackle student loan and credit card debts while still planning for the future. “Particularly for the younger generations of millennials and Gen Z, instabilities are taking adults into a different place in terms of how they’re thinking about managing their current lifestyle,” Schmitt says.
Americans’ savings and debt balances differed across generations, according to the survey. Let’s break down the data.
Generation Z
Generation Z (ages 11 to 26) reported the highest 2023 savings goals and second-highest overall savings, according to the survey. Gen Z adults saved $5,833.17 overall in 2022.
Additionally, they reported aiming to save an average of $13,881.77 in the upcoming year. Gen Zers are also aiming to retire at 59, the lowest average age of any generation.
Gen Z adults are more savings-focused for several reasons, Schmitt says. Having grown up very close to older relatives — including silent generation grandparents and great-grandparents — who experienced economic hardship, Gen Z has seen first-hand the impact of poor financial management and economic crises.
Similarly, having grown up with Gen X and boomer parents, Gen Zers have witnessed the effects of weak investment and savings strategies, Schmitt says.
“In general, they tend to take a more conservative stance toward things like…
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