Survey finds nearly 70% of Americans are confident in their investment strategy

More than 60% of Americans feel they are in a better place to achieve their goals than generations that came before them, according to Schwab’s eighth annual Modern Wealth Survey, an examination of how Americans think about saving, spending, investing and wealth. Boomers lead the charge, with 66% believing they are more or as likely as older generations to reach their goals, followed by Gen X (63%), Millennials (62%) and Gen Z (60%).

One factor likely driving the positivity across generations is the rise in the number of Americans investing in the stock market. Schwab’s survey data shows that almost three in five Americans (58%) are investing today. This is in line with recent Federal Reserve data, which is up from 53% in 2019 and is the highest on record.

When asked specifically why they are in better financial shape than previous generations, Schwab’s survey reveals that Americans believe they now have more ways to build wealth (50%), increased accessibility to investing (46%) and additional investment options available to them (46%). Gen Z, which starts with those born in the late 1990s, notes that a top reason for their financial confidence is improved access to investing. Gen Z began investing when they turned 19 years old on average, nearly half the age of when Boomers started investing (35), according to Schwab survey findings.

“There has never been a better time to be an investor, and it’s encouraging to see that a majority of Americans are engaged with their personal finances and building long-term wealth, particularly younger generations who are beginning to save and invest earlier in their lives,” said Jonathan Craig, Head of Investor Services at Charles Schwab. “During the pandemic, we saw an increase in the number of Americans investing, but there are a lot of factors driving this trend that were in place before that and continue to drive investment activity now. Industry changes such as lower costs and minimums to invest and get advice, broader access to sophisticated platforms and tools, and a proliferation of investing information have all contributed to making investing more accessible than ever before. Increasing access to investing has been Schwab’s core mission from day one, and it’s still at the heart of everything we do today.”

Schwab’s survey shows nearly 70% of Americans are confident in their investment strategy and point to the availability of financial advice and knowledge (51%) and the ability to easily research companies and investments (37%) as top reasons. Gen Z, the most confident of the generations, says that learning about investing at an early age is the biggest factor for their confidence. Additionally, more than a quarter of Gen Z respondents report that they were taught about investing in school, significantly more than older generations.

Despite increased levels of investing, survey respondents admit there’s more they can do, with only 18% saying they are currently on top of their finances. Nearly one-third (32%) feel they are on track to being on top of their finances and another one-third (34%) note that they need to make changes to feel more in control. One key area for improvement among Americans is financial planning. Schwab’s survey finds that only 36% of Americans have a written financial plan. Among those who do, 76% say it makes them feel more in control of their finances and nearly all (96%) say they feel confident that they will reach their financial goals.

“Investing and financial planning are more accessible and more affordable today than ever before, and while Americans are increasingly engaged with their finances overall, there is still room for improvement when it comes to more formalized financial planning,” said Rob Williams, CFP^®, Managing Director of Financial Planning at Charles Schwab. “When clients begin the financial planning journey, they discover that there is much more to a financial plan than a document. Today’s financial plans feature interactive digital tools designed to track progress and assess how changes in your life goals or circumstances may influence your financial strategy.”

To learn more about financial planning and access an array of goals-based calculators, tools, and educational planning content, visit Schwab’s Financial Planning Hub.

About the Modern Wealth Survey

The online survey was conducted by Logica Research from March 4, 2024, to March 18, 2024, among a national sample of 1,000 Americans aged 21 to 75. An additional 200 Generation Z Americans completed the study. Quotas were set to balance the national sample on key demographic variables. Detailed results can be found at https://www.aboutschwab.com/schwab-modern-wealth-survey-2024.

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