December 5th, 2023
60% of Americans with student loan debt are worried about defaulting on their loans
Springfield, Mass. – December 5, 2023 – While Americans may be feeling less jolly about their financial futures, the latest Consumer Spending & Saving Index from MassMutual indicates they are still planning to deck the halls, as economic anxiety has not dampened their holiday spending plans.
“Student loan payments are still playing the Grinch this holiday season, and many Americans are wisely making lifestyle changes to pay off their debt while planning to spend thoughtfully,” stated Paul LaPiana, CFP, head of MassMutual brand, product and affiliated distribution. “It is crucial to recognize that challenging times require more thoughtful financial planning, and this is a good moment in the year to reflect on what’s ahead. Make a list and check it twice: prioritizing savings, reducing debt, and diversifying investments can help people safeguard their financial well-being and protect their loved ones.”
STUDENT LOAN REPAYMENTS: Three months after the federal student loan payment pause ended, 3 in 5 impacted individuals are worried about defaulting on their loans and over one third do not expect to fully pay their loans off before they retire.
MACROENVIRONMENT: People are more preoccupied with macroeconomic events that could impact their finances compared to just three months ago. Interestingly, there is a generational divide over what macroeconomic issue will impact Americans’ finances the most.
HOLIDAY CHEER: Intriguingly, Americans’ anxiety over their financial futures has not notably dampened their holiday cheer compared to last year.
NEW YEAR’S RESOLUTIONS: Feeling the effects of inflation and high interest rates, many younger Americans are planning to make a financial resolution for 2024, with more than half hoping to save more and make more money.
The MassMutual Consumer Spending & Saving Index tracks financial outlooks and behaviors in a changing economic environment. It offers an in-depth snapshot of people's saving and spending behaviors and examines sentiment and attitudes toward navigating the changing state of the economy with an emphasis on inflation, spending and changes in interest rates. Commissioned by MassMutual, the research was conducted online by PSB Insights from October 19 to November 2, 2023, among a nationally representative sample of 1,000 U.S. adults (ages 18+). Research was also conducted with an additional sample of 500 adult Massachusetts residents from October 19 to November 7, 2023.
About MassMutual (Massachusetts Mutual Life Insurance Company)
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. Founded in 1851, the company has been continually guided by one consistent purpose: we help people secure their future and protect the ones they love. With a focus on delivering long-term value, MassMutual offers a wide range of protection, accumulation, wealth management and retirement products and services. For more information, visit www.massmutual.com.