Cost of insurance among top consumer financial concerns
Only 30% of consumers said they have worked with a financial advisor or planner for support in navigating their personal finances.
Confidence in the economy is down and it’s becoming more common for Americans to dip into their savings for basic needs like housing, healthcare and insurance, according to the latest Nationwide Economic Impact survey.
Only 16% of consumers said they would rate the United States economy as “good” or “excellent” when the survey was conducted March 30 through April 13, 2023 – a decrease of 8 points since the Fall of 2022. Nearly one-fifth of those surveyed said the cost of their insurance is among their top financial concerns.
Many said they had changed their behaviors over the last year in order to save money. This includes both minor changes, like eating out less often and driving less, to changes with longer-lasting effects like relying more on credit cards, looking for cheaper housing or reducing their retirement contributions.
According to Nationwide’s study, 68% of consumers expect there to be a recession in the next six months; and 78% of those consumers expect the recession to be severe. When asked about the future of their personal finances, however, people were slightly more optimistic, with just 29% stating they believe their financial situation will get worse over the next six months.
Only 30% of consumers said they have worked with a financial advisor or planner for support in navigating their personal finances, while 48% said they rely on friends and family, 26% use online resources and 20% said they use prayer.
Though 12% of consumers rated acquiring insurance among their top five financial goals, the study found fewer insureds have reviewed (or plan to in the next six months) their current insurance policies than in Fall 2022 – with the number falling from 78% to 71%.
The actions insured have taken or plan to take with their insurance in order to meet their current financial needs include:
- Checking their insurance policies online (51%)
- Decreasing their coverage/limits on existing policies (26%)
- Switching to a new insurance agent (23%)
- Removing a policy from their coverage (20%)