Finance

Not setting aside funds for retirement early enough ‘biggest’ financial regret for Americans: Bankrate

Published

8 months ago

September 2, 2024

Affirm co-founder and CEO Max Levchin says the company is in ‘really good shape’ on ‘The Claman Countdown.’

Setting aside funds for retirement is important – and 22% of U.S. adults reported not starting the practice early enough brought them the most financial regret.

Bankrate reported that to be the case as part of a recently-released survey that YouGov conducted July 16-18 on its behalf using a non-probability based sample of 2,355 American adults that more broadly found 77% hold some type of financial regret.

The 22% figure made remorse about not getting an early enough start on stashing away funds for retirement the financial regret that weighed most heavily on Americans, per the survey.

THE NUMBER OF 401(K) MILLIONAIRES HIT A NEW RECORD HIGH

Bankrate said that particular issue has emerged as the biggest financial regret “in 6 of the 7 years of polling.”

A person puts money into a retirement savings jar. (iStock / iStock)

Earlier this year, the amount of money that Americans think they must have in order to “comfortably” retire became $1.46 million, according to a Northwestern Mutual report.

The April report found U.S. adults have set aside $88,400 on average so far for their Golden Years. That meant they had an average of $1.37 million left to save to hit the “magic” retirement number.

THE ‘MAGIC NUMBER’ TO RETIRE COMFORTABLY HITS A NEW ALL-TIME HIGH

Meanwhile, Bankrate said that among top financial regrets, not building up a sufficient emergency fund and racking up too much credit card debt were also identified as major ones by double-digit percentages of American adults, though not as much as retirement savings.

Eighteen percent called the former their “biggest,” while a somewhat smaller share, 14%, said the latter, the survey found.

Serious mature couple calculating bills to pay, checking domestic finances, middle aged family managing, planning budget, expenses, grey haired man and woman reading bank loan documents at home (Istock / iStock)

Things like amassing too much student loan debt, not saving enough for a child’s education and purchasing a house beyond one’s means also financially haunted 5%, 4% and 2% of American adults, respectively. In the case of another 12% with financial regrets, “something else” made them feel the worst, according to Bankrate.

Slightly under two-thirds of Americans that hold financial regrets have been working to improve upon the situation that’s making them feel that way, reporting either “some” or “significant” progress in the past year, the survey found.

On the other hand, 40% have made no headway.

Respondents identified various things as hindering efforts in the past 12 months to work on their financial regrets.

For 45% of financially regretful Americans, inflation or high prices hurt their progress the most, according to Bankrate. That was 27 percentage-points higher than employment situations pointed to by 18% of people. High interest rates, family dynamics and other factors also posed challenges, the survey found.

Young woman with braided hair sitting by the table, looking on her smart phone. Paying bills on the phone, checking her finance on the phone app. Millenial generation uses new and improved ways of dealnig with money. Everything can be done over the p (iStock / iStock)

“Don’t expect an overnight fix,” Bankrate Chief Financial Analyst Greg McBride said in a statement of high prices. “Inflation is moderating, but that doesn’t mean prices are coming down, just that they’re not going up as fast.”

INFLATION RISES 2.9% IN JULY, LESS THAN EXPECTED

In July, the most recent month with available data, inflation measured by the Consumer Price Index increased 0.2% month-over-month and 2.9% year-over-year.

And while most Americans harbor financial regrets, the Bankrate survey also revealed how many don’t hold any – 18%.

Megan Henney contributed to this report.

Finance

More Americans buy groceries with buy now, pay later loans

Published

3 hours ago

April 26, 2025

Business Finance News

People shop for produce at a Walmart in Rosemead, California, on April 11, 2025.

Frederic J. Brown | Afp | Getty Images

A growing number of Americans are using buy now, pay later loans to buy groceries, and more people are paying those bills late, according to new Lending Tree data released Friday.

The figures are the latest indicator that some consumers are cracking under the pressure of an uncertain economy and are having trouble affording essentials such as groceries as they contend with persistent inflation, high interest rates and concerns around tariffs.

In a survey conducted April 2-3 of 2,000 U.S. consumers ages 18 to 79, around half reported having used buy now, pay later services. Of those consumers, 25% of respondents said they were using BNPL loans to buy groceries, up from 14% in 2024 and 21% in 2023, the firm said.

Meanwhile, 41% of respondents said they made a late payment on a BNPL loan in the past year, up from 34% in the year prior, the survey found.

Lending Tree’s chief consumer finance analyst, Matt Schulz, said that of those respondents who said they paid a BNPL bill late, most said it was by no more than a week or so.

“A lot of people are struggling and looking for ways to extend their budget,” Schulz said. “Inflation is still a problem. Interest rates are still really high. There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can.”

“For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” he said.

He stopped short of calling the results a recession indicator but said conditions are expected to decline further before they get better.

“I do think it’s going to get worse, at least in the short term,” said Schulz. “I don’t know that there’s a whole lot of reason to expect these numbers to get better in the near term.”

The loans, which allow consumers to split up purchases into several smaller payments, are a popular alternative to credit cards because they often don’t charge interest. But consumers can see high fees if they pay late, and they can run into problems if they stack up multiple loans. In Lending Tree’s survey, 60% of BNPL users said they’ve had multiple loans at once, with nearly a fourth saying they have held three or more at once.

“It’s just really important for people to be cautious when they use these things, because even though they can be a really good interest-free tool to help you kind of make it from one paycheck to the next, there’s also a lot of risk in mismanaging it,” said Schulz. “So people should tread lightly.”

Lending Tree’s findings come after Billboard revealed that about 60% of general admission Coachella attendees funded their concert tickets with buy now, pay later loans, sparking a debate on the state of the economy and how consumers are using debt to keep up their lifestyles. A recent announcement from DoorDash that it would begin accepting BNPL financing from Klarna for food deliveries led to widespread mockery and jokes that Americans were struggling so much that they were now being forced to finance cheeseburgers and burritos.

Over the last few years, consumers have held up relatively well, even in the face of persistent inflation and high interest rates, because the job market was strong and wage growth had kept up with inflation — at least for some workers.

Earlier this year, however, large companies including Walmart and Delta Airlines began warning that the dynamic had begun to shift and they were seeing cracks in demand, which was leading to worse-than-expected sales forecasts.