A Crisis of Confidence is Reshaping the American Dream, U.S. Bank Survey Finds

A new survey from U.S. Bank found that many Americans are making smart, responsible choices – budgeting, investing, cutting back on spending. But many feel progress is increasingly elusive because the goals most people care about – buying a home, retiring comfortably, building wealth – depend on economic forces beyond their control. However, the survey found that financial planning and professional advice significantly improve confidence and feelings of control.

The New American Reality: When Smart Money Moves Aren’t Enough
The survey of 5,000 adults found although many Americans continue to make responsible financial choices – budgeting (68%), reducing leisure spending (64%) and creating financial plans (57%) – a majority of Americans feel a lack of control over many important life decisions:

• 81% say it’s harder to retire now than it was for their parents (87% Millennials; 84% Gen Z and Gen X; 68% Boomers)
• 77% said the current economic environment influences their retirement timeline (86% Gen Z and Millennials; 79% Gen X; 55% Boomers)
• 77% said the economy influences where to live, including more affordable parts of the country or tax-friendly states (90% Gen Z; 84% Millennials; 76% Gen X; 61% Boomers)
• 75% said the economy influences whether they buy or rent a home (91% Gen Z; 84% Millennials; 72% Gen X; 51% Boomers)
• 63% say they are worried they will have to come out of retirement due to economic factors (77% Millennials; 74% Gen Z; 69% Gen X; 39% Boomers)

In addition, while traditional financial goals like owning a home and saving for retirement are still as important across generations and genders as ever, personal goals like having meaningful relationships with family, having children and maintaining emotional well-being are also extremely important – particularly to younger generations.

“This year’s survey reveals a seismic shift in the American dream,” said Scott Ford, head of Wealth Management at U.S. Bank. “Although many survey respondents are making prudent choices, they are disheartened and wonder if their efforts are worth the sacrifice. The good news is that even small steps can help you take control of your financial health, including having a financial plan and investing what you can, even if it’s a small amount.”

Additional key findings from the survey:

Redefining Success: Stability Matters, but it Feels Increasingly Out of Reach
“For many Americans, success today means more than achieving financial goals,” Ford said. “Don’t be afraid to factor your personal fulfillment into the financial planning process. Starting with a view of what matters most to you and what you envision for your life can serve as a highly motivating north star as you build and execute a plan that will help you get there,” Ford said.