Many clients carrying ‘money trauma’ into their future

investmentnews.com:

While economic and financial conditions continue to put considerable pressure on their day-to-day finances, Americans are desperately looking for alternative resources to cling to that will help with their long-term financial goals and retirement savings.

That “clinging” seems to be helping, as inflation is causing many to take positive financial planning steps. A study released Friday by Empower shows that 79% of American workers have created a budget to help manage inflation. Fifty-six percent sought out a financial planner, while 35% plan to increase their contributions to their retirement savings accounts.

Additionally, two-thirds have no plans to sell assets or investments and 69% don’t plan to reduce their contributions to retirement savings.

When all is said and done and when inflationary pressures are behind us, many will likely still be putting savings aside to ensure they’re in a better position and can leave a legacy.

“People that have made positive steps due to inflation will continue doing those steps,” said Sean Lovison, financial planner and founder of Purpose Built Financial Services. “It’s like the legacy of any other great recession, or the Great Depression, where people that are immediately affected by it kind of carry that money trauma through their entire lives.”

One approach that is helping Americans save money and battle inflation is account aggregation. “Account aggregation, or the linking of accounts in one place, provides individuals with a comprehensive view of their financial situation,” the report said. “A consolidated view can help people make more informed financial decisions.”

Empower also said workplace savers using professionally managed strategies — target-date funds or managed accounts