Your Money Survey findings

 A new CNBC Your Money Survey conducted by SurveyMonkey found 74% of Americans are feeling financially stressed, up from 70% in an April survey. About 37% of respondents indicated that they are “very stressed” about their personal finances, compared to only 30% in April. The top stressors remained the same as in April: inflation, rising interest rates and a lack of savings. Some of the findings, 4 in 10 workers are NOT contributing to a 401(k) or employer sponsored plan. The good news is that means 6 out of 10 ARE contributing and here’s how they’re funding their 401(k) plan. 46% are contributing as much as they can afford. 24% are putting away as much as their employer will match. 11% are saving up to this year’s employee contribution limit. 8% just save the automatic default amount set by their plan. Here’s facts about 401(k)’s: In 2023, workers younger than 50 years old can save up to $22,500 for retirement in 401(k) plans, and savers who are age 50 and older can put away an extra $7,500 in “catch-up” contributions. The average company match in a 401(k) plan was 4.7% of a worker’s salary in the second quarter of 2023.

The survey also found that once they’ve stashed away their 401(k) savings, workers’ understanding of where their money is going is mixed. Nearly half, 46%, don’t know what investments are in their 401(k) and a little more than half, 54%, are aware of their investment choices. Still, the majority — 56% — admit they are not on track with their yearly 401(k) savings to retire comfortably, while some 42% say they are on track for a comfortable retirement. These types of surveys just give a glimpse of what the average American is feeling right now with their finances. Some simple things to remember to the 4 in 10 people in this survey that are not contributing to a 401(k): I would recommend putting in enough to get the employer match. As important as saving for retirement is, to de-stress your financial life, make sure you have an emergency fund. I know I harp on this all the time but being able to borrow from yourself when an unexpected expense comes up is crucial. Another way to lower stress with your finances is having a game plan to deal with any high-interest debt you have. Any questions go to yoursafemoneyshow.com for full contact information.