A preview of U.S. consumer sentiment from the upcoming 2024 financial inclusion report reveals improved access to financial products and services in the U.S., but a decline in feelings of financial inclusion. Explore key data and trends.
Americans are experiencing a financial paradox: Despite increasing access to financial resources, fewer people say they feel financially included.
According to new insights from the forthcoming 2024 Principal Global Financial Inclusion Index, U.S. households say access to financial products and services has improved year-over-year in 16 out of 21 key metrics. However, feelings of financial inclusion have declined – a trend we’ve monitored since the inception of the report. Feelings of financial inclusion have fallen from 85% to 56% in the U.S. between 2022 and 2024.
Feelings of financial inclusion among U.S. consumers
| Year | Percentage of people that feel financially included | Net change since previous year |
|---|---|---|
| 2022 | 85% | - |
| 2023 | 73% | -12 points |
| 2024 | 56% | -17 points |
Financial inclusion measures the degree to which people have access to useful and affordable financial products, services, and support that meets their needs. These products and services include those provided by three key pillars of financial inclusion: government, financial services, and employers.
According to the May 2024 survey, fewer U.S. consumers say these systems act in a way that helps them feel financially included. The largest fall was within the financial system pillar, followed by government and employers.
U.S. household financial decision maker sentiment toward the three pillars supporting financial inclusion, year-over-year comparison
| Support pillar | 2023 | 2024 | YoY net change |
|---|---|---|---|
| % net included | % net included | % net included | |
| Feel the government acts in a way that is helpful for you to feel financially included | 50% | 42% | -8 points |
| Feel financial systems act in a way that is helpful for you to feel financially included | 67% | 57% | -10 points |
| Feel employers act in a way that is helpful for you to feel financially included | 72% | 67% | -5 points |
Three key takeaways:
U.S. households feel less financially included but say access to financial products and services has improved year-over-year.
Despite reporting that their access to financial products and services has improved, people report feeling poorer than they did before, and unable to grow their wealth.
This could be driven by continued impacts of inflation, the drying up of pandemic-era consumer spending surpluses, and more polarized feelings around financial health due to the election year.
More access but mixed sentiment about retirement
A top priority for U.S. workers is saving for retirement. This year’s consumer survey sought to understand sentiment around accessing related planning resources and tools.
While access to financial products and services has improved in 16 out of 21 criteria (including bank accounts, insurance, investment products, and financial advice), over the past year, retirement sentiment was more mixed. Nearly half of respondents (44%) do not believe they will have financial freedom in retirement, which could be why nearly 6-in-10 (57%) believe they will have to work past retirement age.
And it’s not just those working towards retirement, as 47% of those already retired say they don’t currently have the financial freedom to live and do as they wish in retirement.
While financial access is improving, women continue to feel left behind
While women’s access to financial products and services has improved, they still report significant barriers to financial security.
The research found only 39% of women agreed they currently have the financial freedom to live and do as they wish, compared to 54% of men.
Women are also more pessimistic about their retirement. They expect to work later in life, and less than 40% feel they will be able to live as they wish in retirement, compared to 51% of men.
Not only do more women feel retirement is out of reach, but they also continue to feel pressed just to get by: Only 39% of women feel able to meet financial obligations today while still saving or investing for retirement, compared to 52% of men.
Gender differences in feelings of financial inclusion
| To what extent do you agree with the following statements? (Net agree) | Women | Men | Gap |
|---|---|---|---|
| I am satisfied with my present financial situation. | 27% | 43% | 16 points |
| I could easily afford private medical insurance if I need it. | 20% | 34% | 14 points |
| I have created a financial plan (i.e., budget, savings plans) and regularly check my progress toward my goals. | 47% | 60% | 13 points |
| I can easily access high-quality investment products. | 49% | 62% | 13 points |
| My employer/employers provide generous insurance coverage. | 54% | 66% | 12 points |
Read more insights in the 2024 U.S. consumer data fact sheet.
What’s next?
The third annual Principal Global Financial Inclusion Index will be released in the fourth quarter of 2024. To learn more about the Global Financial Inclusion Index, visit principal.com/financial-inclusion.
