Bank of America today announced local findings from the latest Merrill Edge® Report which reveal that 89 percent of Atlantans are highly optimistic about the local economy over the next five years, and many plan to retire in the greater metro area.
This biannual study of more than 1,000 mass affluent respondents explores Americans' evolving financial concerns and priorities. Based on an oversample of 300 Atlanta residents1, the latest report finds 71 percent of area respondents have started planning for retirement, and 46 percent intend to live out their golden years in Atlanta:
Atlantans of all ages feel optimistic about the city's economic future, including Gen Z (94 percent), millennials (89 percent), Gen X (86 percent), and baby boomers (90 percent).
Respondents who plan to retire in the greater Atlanta area would do so in light of the cost of living (51 percent), weather (51 percent), housing (32 percent), culture (26 percent), and access to health care (25 percent).
However, not everyone sees the city through "peach-colored" glasses, as nearly one-quarter plan to leave Atlanta after retirement, with their top grievances including traffic (43 percent), crime (39 percent), and the city's fast-paced nature (30 percent).
While Atlantans are confident about the city's growth potential, 59 percent worry about their own financial security over the next five years. Their greatest concerns include the potential for inadequate savings (58 percent), a looming recession (44 percent), and market volatility (39 percent).
"It's great to see Atlanta residents of all ages planning for retirement, and great for the city that many intend to stay here," said Aron Levine, head of Consumer Banking and Investments for Bank of America, who is based in Atlanta. "While area residents are confident about the growth of their city, many fear for their own financial security. Establishing a financial plan and tracking progress toward near and longer-term goals can be key to living comfortably today and in the future."
Merrill is committed to empowering clients and helping them plan for the future at every age and in every stage of their financial lives through a combination of tools, people and know-how across Merrill Edge Self-Directed, Merrill Guided Investing, and Merrill Lynch Wealth Management.
Mom and dad would be proud
Eighty-four percent of Atlantans believe how they manage their finances today would make their parents proud. This may be due in part to savvier spending habits and the fact that 84 percent of Atlanta residents improved their financial lives in meaningful ways in the last year, including raising their credit score (52 percent), paying off some or all of their credit card debt (51 percent) and establishing an emergency fund by setting enough aside to live on for three months without an income (33 percent).
Atlantans are also more optimistic they will reach certain financial milestones within their lifetime than their national counterparts, including:
Paying off all their credit card debt (94 percent, compared to 89 percent nationally).
Buying a home (89 percent, compared to 83 percent nationally).
Paying off their mortgage (88 percent, compared to 80 percent nationally).
Going on multiple vacations a year (80 percent, compared to 75 percent nationally).
Always on my mind
While Atlantans are becoming more conscientious about money and mindful of their spending, many admit that their financial life weighs heavily on their personal well-being, affecting both their mental health (59 percent) and physical health (52 percent).
One source of concern is debt. Excluding their mortgages, 78 percent of residents are carrying around some form of debt.
The types of debt respondents are dealing with the most include credit cards (54 percent), auto loans (43 percent), and student loans (20 percent).
Sixteen percent of Atlantans with debt owe more than $20,000, while 19 percent owe $50,000 or more.
In order to pay off debt, 65 percent of respondents are putting certain activities and milestones on the back burner, including going on vacation (41 percent), buying a car (38 percent), moving to a more expensive city or neighborhood (24 percent), and buying a home (23 percent).
Atlantans are also putting their money where their mouth is. Two in five are willing to spend more at a retailer whose values align with their own, while 51 percent would stop buying products from companies whose values fundamentally conflict with their own (compared to 40 percent nationally).
All in the family
With one of the largest generational wealth transfers on the horizon, 94 percent of Atlantans want to leave money and other assets behind, mainly to their children (63 percent), spouse/partner (55 percent), siblings (16 percent) and nonprofit organizations (15 percent). However, that doesn't necessarily mean they have a plan in place to do so.
Seventy-eight percent of Atlanta parents want to leave an inheritance for their children, and 35 percent are making sacrifices to their lifestyle today to leave more later, including buying fewer personal items (36 percent), cutting back on dining out and entertainment (34 percent), reducing their travel and vacations (31 percent), and delaying retirement (20 percent).
Sixty-two percent of Atlantans have not consulted with a financial professional about their estate planning, including 57 percent of baby boomers.
For more in-depth information about the financial behaviors and priorities of mass affluent Americans, read the entire spring 2019 Merrill Edge Report. A complementing infographic is available here.
1 Merrill Edge Survey Methodology
Concentrix (an independent market research company) conducted a nationally representative, panel-sample online survey on behalf of Merrill EdgeApril 17-May 9, 2019. The survey consisted of 1,000 mass affluent respondents throughout the U.S. Respondents in the study were defined as aged 18 to 23 (Gen Z) with investable assets between $50,000 and $250,000 or those aged 18 to 23 who have investable assets between $20,000 and $50,000 with an annual income of at least $50,000; or aged 24-plus with investable assets between $50,000 and $250,000. For this purpose, investable assets consist of the value of all cash, savings, mutual funds, CDs, IRAs, stocks, bonds and all other types of investments such as a 401(k), 403(B), and Roth IRA, but excluding primary home and other real estate investments. We conducted an oversampling of 300 mass affluents in Atlanta. The margin of error is +/- 3.1 percent for the national sample and about +/- 5.6 percent for the oversample market, reported at a 95 percent confidence level.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,400 retail financial centers, including approximately 1,800 lending centers, 2,200 financial centers with a Consumer Investment Financial Solutions Advisor, and 1,500 business centers; approximately 16,400 ATMs; and award-winning digital banking with more than 37 million active users, including over 27 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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Reporters May Contact:
Matthew Daily, Bank of America, 404.607.2844