Insights & Education

Strengthening Americans’ financial capabilities

Corebridge recently fielded our second survey of Americans on the topic of financial capabilities to understand what it means to them, how they rate their current capabilities, and what can help them feel and be stronger financially.* Here is what we learned.

What does being financially capable mean to Americans?

Financial capability means different things to different people. For some, it may mean being comfortable with financial terminology and concepts. Others may take a broader perspective and equate it with being able to live the life they want to.

The top three ways respondents define financial capability is the ability to:

Be financially independent.
Manage my day-to-day financial affairs without stress.
Comfortably live the lifestyle of my choosing.

Getting serious about financial planning

Ideally, the development of financial capabilities would start before entering the workforce. Reflecting on their knowledge today, adults believe that saving money for the future, budgeting, and basic financial literacy are the most important financial skills that children should learn in K-12.

An early start provides adults with a stronger financial foundation when they do decide to get serious about financial planning.

Top reasons for getting financially serious

Retirement
Earning a paycheck
Nagging financial anxiety

When and why people get serious about financial planning is highly dependent on an individual’s unique circumstances.

Reasons for getting serious about financial planning vary across demographics

56% of baby boomers say retirement is why they got serious about financial planning, but only 22% of Gen Zers say the same.
28% of women vs. 20% of men say that nagging financial anxiety made them get serious.
20% of Gen Zers say less financial help from their parents made them get serious, but only 5% of baby boomers agree.

What’s holding people back?

As people strive to become financially capable different obstacles stand in their way. More than four in ten Americans (41%) say not having enough money is the most common factor holding them back. Debt (32%), poor money management habits (22%), lack of financial knowledge (20%), and too many competing financial priorities (17%) round out the top five.

On a positive note, almost a quarter of Americans (24%) consider themselves to be financially capable. As expected, the progression of age, higher income, and more advanced educational levels correlate strongly with people feeling financially capable.

Financial education and planning can help overcome obstacles. For example, budgeting tools can help individuals take control of their spending habits and put them in a position to draw down their debt. Working with a financial professional can also help address many of the obstacles people are facing and prioritize competing financial priorities.

Insights into what’s holding people back and who’s being held back

Debt: 37% of Gen Xers (the largest proportion of any generation).
Income: 51% of respondents with less than $50K income.
Don’t know where to begin: 28% of Gen Zers (twice the broader population).
Only 12% of Gen Zers feel ﬁnancially capable.

Opportunities for quick improvement

While two-thirds say they have an intermediate-to-expert understanding of retirement concepts, fully one-third report being novices on the topic. Interestingly, Gen Zers, millennials, and Gen Xers rate their understanding of retirement concepts similarly – one would expect retirement expertise to increase notably with age.

It’s also interesting that more than three quarters of respondents say they have an intermediate-to-expert understanding of managing debt, yet debt is cited as the second-most common obstacle standing in the way of being financially capable.

More than one in four (28%) need help understanding how they can put an emergency plan in place and nearly half (49%) don’t have an understanding of the foundational financial concept of compound interest.

Focusing on areas in which employees rate their knowledge as novice presents an engagement and educational opportunity. In addition to compound interest, more than a quarter of respondents say they are novices when it comes to planning and saving for retirement (34%), putting an emergency savings plan in place (28%), and investing in stocks and mutual funds (52%).

Where workers want to gain expertise

Investing in stocks (38%): Men are more interested than women (43% vs. 32%).
Planning and saving for retirement (28%): Gen Xers (38%) have the greatest interest.
Managing debt (28%): More top of mind for Gen Zers (35%).

Taking steps to improve financial wellbeing

When it comes to financial planning, almost 9 in 10 adults say they would do something differently than their parents. Those changes vary notably by age. Saving more and earlier for retirement is the most common change cited (41%), but this sentiment is more likely to be shared by baby boomers (49%) than Gen Zers (36%).

Being better at budgeting is the second most listed response (38%). However, in this case Gen Zer and baby boomer interest is reversed: Almost half of Gen Zers (49%) want to be better at budgeting, compared to only 20% of baby boomers.

People are also getting serious about retirement and financial planning at an earlier age. Almost two-thirds of Gen Zers say they got serious about retirement and financial planning by the age of 25 compared to only 10% of baby boomers.

Top five used financial planning sources

Friends, family, or colleagues (54%)
Tools available through your bank or financial institution (42%)
General news media (38%)
Social media (35%)
Financial professional (34%)

Three ways employers can help boost employee financial capabilities

Understand different employee populations and the unique challenges they face.

Your employee base is likely comprised of four maybe even five generations with its own financial priorities. Understanding the diverse needs by generation, lifestage, or other breakouts can help you better meet their needs.

Implement a comprehensive education and financial literacy program.

Employee financial capabilities vary as do their unique financial situations. Robust educational programs offer employees relevant education and support wherever they may be in their financial journeys.

Provide access to financial professionals.

Financial professionals can provide personalized guidance to employees that are looking for one-on-one counseling. They can help employees manage their current financial needs while putting in place longer-term plans to meet their retirement and other financial goals.

Learn more

_{* Methodology - The 2025 Corebridge Financial Capability Survey was conducted online by Morning Consult on behalf of Corebridge Financial between Feb. 20-21, 2025, among a national sample of 2,201 adults.}