Americans still believe they can achieve financial success, but the definition of success is changing, according to the first-ever “Nationwide Financial Growth & Protection Index” powered by the Nationwide Retirement Institute. The report reveals rising costs and economic uncertainty are reshaping the American Dream, with consumers increasingly prioritizing financial stability, resilience and protection over traditional measures of wealth accumulation.
That shift is reflected in how Americans now view financial success. Eighty-four percent say the American Dream is now more about financial stability than building wealth, while the same percentage believe it is harder to get ahead financially than it was for previous generations.
For many Americans, this mindset is shaped by the pressures of everyday financial life. Nearly seven in 10 consumers reduced spending over the past year to improve their financial situation, while 45 percent dipped into savings to cover essential expenses.
Three-quarters say their primary financial focus is covering basic expenses, and 74 percent say they are simply trying to stay financially afloat, suggesting many Americans are making financial decisions from a place of protection rather than ambition.
“Financial progress still matters to Americans, but the path to achieving it has changed,” said Craig Hawley, president and COO of Nationwide Financial. “People still want to build wealth, but today’s environment has made financial stability and resilience just as important. Protecting what you’ve worked hard to build has become a critical part of achieving long-term financial success.”
Seven in 10 consumers believe they can significantly improve their financial situation over the next five years, while nearly six in 10 (59 percent) expect their income to increase meaningfully over time.
However, many have yet to take steps to protect the financial future they expect. Just 30 percent have taken steps to protect against income loss due to illness or injury, and more than one-quarter say they would not be financially protected if their household’s primary income earner could no longer work. The findings point to a growing gap between consumers’ financial aspirations and the safeguards they have in place.
That disconnect is especially evident when it comes to retirement planning. More than eight in 10 consumers say they would prefer a guaranteed, predictable retirement income stream over higher-growth investments, yet only 24 percent currently have products or strategies designed to reduce market risk in retirement.
