Highlights From the FINRA Foundation National Financial Capability Study slide image

Highlights From the FINRA Foundation National Financial Capability Study

Financial Capability in the United States Younger respondents and those with lower incomes are more likely to engage in behaviors indicative of financial stress, such as late mortgage payments or hardship withdrawals from retirement accounts. Among respondents ages 18 to 34, 26 percent reported taking a hardship withdrawal in the last 12 months, and 38 percent reported being late with mortgage payments, compared to only 5 percent and 6 percent respectively among those 55 and older. Incidence of hardship withdrawals and late mortgage payments among respondents with incomes of less than $25,000 is more than double that of those with incomes of $75,000 or more. Behavioral signs of financial stress By age Have taken a hardship withdrawal from their retirement account 18-34 26% 35-54 13% (among respondents with defined contribution retirement accounts) 55+ 5% By income <$25K 29% $25-75K 13% $75K+ 13% Have been late with 18-34 38% <$25K 30% mortgage payments (among respondents 35-54 16% $25-75K 18% with mortgages) 55+ 6% $75K+ 14% These same groups are also more likely to exhibit psychological symptoms of financial stress. More than two-thirds of respondents in the lowest age group and two-thirds in the lowest income group reported that their personal finances are a source of anxiety, compared to fewer than half among the highest age and income groups. Personal financial issues are a daily stressor for more than half of those in the lowest age and income groups, while only around a third of those in the highest age and income groups reported thinking about their finances every day. Psychological signs of financial stress Anxious about personal finances 18-34 By age 69% 35-54 62% 55+ 40% By income <$25K 66% $25-75K 58% $75K+ 45% Think about personal finances at least once a day 18-34 52% <$25K 51% 35-54 48% $25-75K 43% 55+ 30% $75K+ 34% < 7 > Highlights From the FINRA Foundation National Financial Capability Study
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