Half of Americans feel that they are “financially frozen.” According to new research.
A survey of the financial behaviour and strategies of 2,000 Americans found that 53% of respondents were stuck, overwhelmed or unsure of what to do with their finances.
Respondents said their biggest financial concerns were sticking to essential supplies (36%) payments and monthly budgets (36%).
Plus, many people are worried about long-term financial security. Almost a quarter (22%) worry about their savings strategy, while others feel that they emphasize retirement (21%), loans and debt payments (20%), and investment (9%).
Information overload contributes to financial paralysis
A survey conducted on behalf of Talker Research Zoe Finance It showed that one of the main reasons people feel “financially frozen” is the overwhelming amount of information on the internet and social media.
Respondents reported feeling most helpless when navigating inflation and cost of living (25%), investment (24%), and budget and savings strategies (23%).
That lack of confidence manifests itself in regret. Three in four (77%) (77%) said they wanted to do something different in the past that could have improved their economic future.
Respondents want to take more action (55%), stick to a tighter monthly budget (41%) and invest (38%).
“We’re committed to providing a range of services to our customers,” said Andres Garcia-Amaya, CFA, Founder and CEO of Zoe Financial. “It’s not always easy to find reliable advice, but with the right help, people can feel more in control of their financial journey.”
83% want to be financially prepared, but more than half (53%) worry they don’t know where to start, or they may have been too long to seek financial advice to make a real difference in the future.
The average person surveyed said he did not take his retirement plans seriously until he was 38 years old.
The good news is that younger generations are taking steps early to prepare for their financial future. Gen Z respondents actively began planning their retirement at age 25 compared to 34-year-old millennials. Both are faster than the older generation. GenX didn’t start until age 38, but the baby boomer generation waited until age 43.
Only 26% of respondents said they had a financial advisor. For those who don’t have it, the misconception is that the biggest blocker to hire is that financial advice and success is only for the wealthy.
Thirty-nine percent of people who don’t think they’re going to find a financial advisor don’t afford it, while 24% think they don’t have enough money to need it (24%).
Other concerns cited by participants were misinformed beliefs that fraud (19%) and misinformed beliefs were misinformed that financial advisors (39%) and custom portfolio strategies (48%) were aimed only at the rich.
“Finances are so personal and often emotional, so many people are reluctant to trust technology blindly in their economic future,” added Garcia Amaya. “People still have financial advice and investment management for the wealthy and can discourage them from seeking guidance. The truth is, in the past, they believe in changing the industry. By enabling more people to find the right advisors that suit their needs, we are trying to help them take their first steps towards financial trust and long-term success.”
Concerns about AI-driven tools in financial decisions
As AI becomes more common, one truth remains in the financial industry. People still value the human touch and are not ready to give up. 37% said they rely solely on AI-driven tools to support their finances, and that they find it uncomfortable to like real people. Most respondents consider human financial advisors to be more reliable (58%), 50% (50%), and effective (47%) than AI-driven tools.
When asked to rank AI concerns about personal finance, respondents said they did not trust new technologies, were concerned about how sensitive data would be stored and used, and they didn’t know how to effectively use AI.
Americans say they lack financial knowledge
- Adjustment of inflation and cost of living (25%)
- Investment (24%)
- Budget preparation and savings (23%)
- Resignation plan (22%)
- Debt Management (18%)
- Social Security (17%)
- Tax Plan (16%)
- Real estate plan (15%)
- Healthcare and insurance (15%)
- Homeownership (12%)
Research method:
The Talker survey looked at 2,000 Americans. The investigation was commissioned by Zoe Finance Managed and implemented online by Talker Research February 13th – 18th, 2025.
