Americans Preparing For Recession

Wed, 27 July 2022  |  consumers economy 

Prudential Financial, Inc.'s latest Pulse research series "Americans Prepare For the Economy's New Act" finds that fears of an economic downturn as well as high inflation could threaten the financial stability and confidence of Americans right after the end of the pandemic.

Among the key findings of this report are:

• 74% expect a recession in the next two-years-- while 79% worry about how inflation might impact their financial security.
• Americans are taking steps to prepare for tougher times ahead. They have cut back on entertainment and meals outside of the home (42%), cancelled monthly subscription plans (29%), and set aside more money for emergency situations (26%).
• Americans are more dependent on nontraditional investments such as cryptocurrency - which the survey found investors had at least equal ownership to traditional investments like ETFs and mutual funds.
• Social media is a major source of financial advice and information for 30% of Americans. 99% of those who reported turning to social media for advice and information said that they have taken the advice.

Rob Falzon, Prudential Vice Chair, says that the world is changing at an unprecedented pace and complexity. With it comes shifts in financial circumstances and the challenges Americans face. "Prudential's Pulse research helps us better understand Americans' diverse views and needs and supports our mission to become a global leader in increasing access to investment, insurance, and retirement security.

Prudential has a long tradition of monitoring Americans' financial health to better understand their needs. The survey, which surveyed 4,000 adults, explores the unique perspectives and goals of an American population and the challenges and feelings they face as they plan for the future. These are key demographic findings:

• Women still face unique challenges in advancing their careers and improving their financial security, despite greater wage growth and a more flexible, remote work culture. Nearly 40% of respondents felt not adequately compensated for the work that they do.
• Millennials feel more financially secure than other generations. 36% of them report feeling financially insecure within the last 12 months.
• Black Americans are more financially confident than before the pandemic. Nearly 6 out 10 respondents report feeling more confident today than they did three year ago.

"The most recent findings from the Pulse survey confirm what Prudential learned from its customers and partners: The financial challenges and opportunities facing Americans are as varied as the country itself," Caroline Feeney, CEO, Prudential's U.S. Insurance & Retirement Businesses. "Our goal is understand these diverse needs and provide innovative, tailored solutions that make an impact on the financial lives of our customers."

Source: Prudential Financial