NEW YORK, Sept. 26, 2017 /PRNewswire/ -- As the U.S.
savings rate drops to a five-yeari low, a new national
survey conducted by PurePoint® Financial, a division
of MUFG Union Bank, N.A., reveals a significant shift in how many
Americans define the "American Dream," as their financial
foundations feel increasingly unstable. 71 percent of Americans
feel the American Dream has changed, and the majority of Americans
(64 percent) say they define financial success as not living
paycheck-to-paycheck.
PurePoint Financial conducted the survey to both understand the
concerns that are top-of-mind for Americans as they consider their
financial futures, and identify the habits of those who are the
best and most consistent at growing their financial nest eggs.
Results show uncertainty around the state of the economy, rising
living and healthcare costs, and the political climate are the
primary factors driving Americans' pessimistic outlook on their
financial future. Only one in four Americans feel it's easier to
get ahead today versus five years ago, and half don't expect to
feel better about their savings five years from today.
Americans feel unprepared, but fears aren't motivating them
to change bad financial habits
The research also shows many Americans are failing to convert
their concerns into better habits when it comes to financial
decision-making and preparing for the future.
- 1 in 3 Americans save 10 percent or less of each
paycheck.
- While Americans openly admit to being concerned about the
future, almost half don't have money saved in a retirement
account.
- Although digital and mobile banking is becoming more
widespread, Americans aren't taking advantage of apps that
can help them make smarter financial choices—just seven percent of
Americans use a savings-specific app.
"Sometimes in the face of uncertainty, people tend to freeze and
not take any action at all," said Pierre P.
Habis, President, PurePoint Financial. "The best advice I
can give people is to always plan for tomorrow by saving what you
can, ideally at least 10 percent of your income, But even if you
can't put that much aside, set up a system to save a set amount
each month. Prioritizing saving on a regular basis can make all the
difference."
Americans are more comfortable discussing religion and
politics with family than finances
The greatest point of tension across the U.S. appears when
discussing finances with their families—even though they expect
parents to be the primary teachers of financial education to future
generations.
- While an overwhelming number of people (87 percent) say they
think parents are responsible for teaching children about
saving, only half (51 percent) of Americans say their own parents
taught them financial and savings skills.
- Many Americans (42 percent) said they ultimately rely on
themselves to learn as best they can.
A group of American "super savers" have cracked the code on
savings habits
About 20 percent of Americans surveyed are "super savers" who
are most likely to set aside a large portion of income regularly
for savings, and demonstrate consistent habits that help them
successfully save.
- Super savers are more optimistic about the future
than other Americans
- They make saving a routine: 40 percent pre-determine an
amount that is automatically deposited into savings from each
paycheck they receive.
As part of its mission to assist Americans in increasing their
savings, PurePoint Financial conducts ongoing research to
understand why and how Americans save. The "State of Savings in
America" research shows that Americans know savings is important to
ensuring their financial futures are stable, and strong financial
habits can help improve optimism and resilience through periods of
economic uncertainty.
About the PurePoint "State of Savings in America"
Research
The PurePoint State of Savings in America Research
is an online survey of 6,001 adults (18+ years of age) in the U.S.
The completed surveys collected were nationally representative. The
research was commissioned by PurePoint Financial and produced by
independent research firm Edelman Intelligence. The margin of error
for the total sample is +/-1.27 percentage points. Data was
collected July 20 – August 3, 2017 by Edelman Intelligence.
About PurePoint® Financial
PurePoint
Financial is a division of MUFG Union Bank, N.A., a proud member of
the Mitsubishi UFJ Financial Group (MUFG), one of the world's
leading financial groups. As the next evolution in the financial
services industry, PurePoint® Financial is the modern
way to save − online, over the phone or in person. PurePoint offers
market-leading CD and savings rates, no monthly fees and all the
flexibility and convenience of online banking with 24/7 access from
your computer, tablet or mobile devices. PurePoint also offers
Financial Centers at select locations staffed by knowledgeable team
members who are committed to delivering exceptional service.
About MUFG Union Bank, N.A.
MUFG Union Bank, N.A., is
a full-service bank with offices across the United States. We
provide a wide spectrum of corporate, commercial and retail banking
and wealth management solutions to meet the needs of
customers. We also offer an extensive portfolio of
value-added solutions for customers, including investment banking,
personal and corporate trust, global custody, transaction banking,
capital markets, and other services. With assets of
$116.7 billion, as of June 30, 2017, MUFG Union Bank has strong capital
reserves, credit ratings and capital ratios relative to peer
banks. MUFG Union Bank is a proud member of the Mitsubishi
UFJ Financial Group (NYSE: MTU), one of the world's largest
financial organizations with total assets of approximately ¥304.2
trillion (JPY) or $2.7 trillion
(USD)¹, as of June 30, 2017. The
corporate headquarters (principal executive office) for MUFG
Americas Holdings Corporation, which is the financial holding
company and MUFG Union Bank, is in New
York City. The main banking office of MUFG Union Bank is in
San Francisco, California.
PurePoint Financial is a division of MUFG Union Bank, N.A.
©2017 MUFG Union Bank, N.A.
All rights reserved. Member FDIC.
PurePoint and the PurePoint logo are registered trademarks and
brand names of MUFG Union Bank, N.A.
i U.S. Bureau of Economic Analysis - Current
personal savings rates in the U.S., August
2017
1 Exchange rate of 1
USD=¥112.0 (JPY) as of June 30,
2017
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SOURCE PurePoint Financial