A recent TD Bank survey uncovered some staggering stats, including that more than one-third of respondents don't feel they have enough savings to cover unexpected bills, while almost one-half added they don't feel prepared for retirement either.
TD Bank conducted its first-ever Financial Preparedness Report, Consumer Index, surveying more than 5,000 U.S. adults to examine their financial challenges, savings habits and the actions they are taking to improve their financial health.
The goal was to learn more about customers' financial preparedness, while sharing these results to help them understand positive actions they can then take.
See What We Learned
44%
of respondents think about their financial future every single day.
Medical emergencies are a top concern.
While a large percentage of respondents admitted to not feeling prepared financially for unexpected expenses, an even larger share of those surveyed gave a staggering response regarding medical emergencies.
Medical emergencies are the most important factor influencing financial preparedness among Americans, with 70% of respondents identifying medical emergencies or illness among their top concerns.
However, there's a big disconnect with those thinking about and those feeling prepared for a medical emergency. Just nearly half said they feel prepared to cover these costs.
Medical emergencies are the most important factor influencing financial preparedness among Americans:
Retirement out of reach?
88%
47%
believe saving for retirement is an important aspect of financial preparedness.
don't feel financially prepared for retirement.
31%
of respondents are not setting aside monthly income for their retirement.
Retirement goals, even for those who have spent decades in the work force, continue to feel out of reach for many, the survey also found:
Taking proactive steps toward stability.
With all the concerns that Americans have about their financial health, the upside to the survey findings are that 81% stated they have taken steps to improve their financial health and well-being.
More than half of respondents have created a budget or already are reducing their spending, while 41% of respondents either use or would consider using a financial planner or advisor to help with their financial preparedness.
"Everyone has a unique financial journey so starting with a personalized plan that covers your immediate needs and future goals is recommended," said Andrew Stuart, Head of U.S. Consumer Products, Auto Finance and Wealth at TD Bank." It's important for consumers to understand their current financial position, as well as their short and long-term goals, and what products and services can help them to be better prepared financially for whatever lies ahead."
72%
69%
66%
...feel more prepared for unexpected home costs.
...feel more prepared for unexpected car costs.
...feel more prepared for unforeseen medical expenses.
Those who currently work with an advisor feel more prepared for unexpected expenses.
Hover over each image below to reveal more information.
The study found that financial preparedness is top-of-mind for consumers:
"With ongoing economic concerns top-of-mind for consumers, preparation is key to better ensure that you're well-positioned in any climate," said Allison Robinson, Head of Retail Distribution at TD Bank. “We aim to provide our customers with the guidance they need to help them achieve their financial goals, and the TD Consumer Index highlights some of the most pressing topics concerning consumers today."
%
70
of respondents identify medical emergencies or illness among their top concerns.
%
59
of those impacted by unexpected bills reported they went into debt as a result of these unexpected expenses.
do not have any retirement savings.
15%
Read the press release here.