Financial Resolutions Hit All-Time High

A record number of consumers (46%) are considering financial resolutions, according to Fidelity Investments’ fourth annual New Year Financial Resolutions Study.

This number has increased 31% since the study started in 2009. Commitments to keep financial resolutions also increased to an all-time high, with 62% of consumers saying they stuck with their resolutions in the past—up from a low of 58% in 2010.  

For the second consecutive year, the top three New Year financial resolutions continue to be saving more (52%), spending less (19%) and paying off debt (19%). Of those who say saving more is their top priority, the median annual target is $2,400 for long- and short-term goals, the same as last year, and double the amount for 2010.   

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The majority of respondents (65%) continue to say they are saving for long-term goals, versus those saving for short-term goals (29%), based on a year-over-year analysis. The top long-term goal identified was saving more for retirement in a tax-advantaged/tax-deferred account (48%), such as an individual retirement account (IRA) or workplace savings plan, followed by saving for college (46%) and retiree health care costs (34%).

(Cont’d…)

The continued focus on saving may be fueled by the fact that more consumers say they are in a worse financial situation (26%) and more in debt (17%) versus the same time last year. 

Thirty-eight percent of respondents say keeping financial resolutions is harder than keeping nonfinancial resolutions (up from 30% in 2009). Despite this, respondents are making progress in reaching their resolution goals. Nearly half (46%) say they achieved more than 80% of their financial resolutions for 2012.   

A telephone survey of 1,012 adults, 470 men and 542 women, 18 years of age and older, living in the continental U.S., was conducted November 9 to 13.

«