2023 U.S. Financial Access Declines by 12%: Principal Study Reveals Major Gaps in Services and Inclusion
The latest 2023 Principal survey highlights a significant 12% drop in Americans’ access to essential financial services including bank accounts, loans, mortgages, and retirement plans, revealing growing disparities especially among women and minority groups.
In 2023, 12% fewer U.S. household decision makers feel they can access necessary financial services and support.
According to Principal's 2023 Global Financial Inclusion Index, fewer Americans report having access to critical financial services such as bank accounts, loans, mortgages, and retirement or pension plans compared to 2022. This 12% decline marks the second largest drop among 42 countries surveyed, second only to Japan's 19% decrease.
Important Highlights
- The U.S. experienced one of the steepest year-over-year declines in financial inclusion sentiment.
- Household decision makers reported a 12% reduction in perceived access to financial products including loans, mortgages, and retirement plans.
- Women in the U.S. are 12% less likely than men to feel financially included, highlighting a significant gender gap.
The survey, conducted by Censuswide from May 4-9, 2023, sampled 1,027 U.S. household decision makers.
Support from government, financial institutions, and employers has also diminished. Only half of respondents felt the government supports financial inclusion—a 21% drop since 2022. Confidence in financial systems fell from 77% to 67%, and employer support declined from 84% to 72%.
Women reported notably lower feelings of financial inclusion across all sectors. For instance, only 42% of women felt government-supported financially, compared to 62% of men.
Women’s Financial Inclusion Challenges
Women consistently reported lower access to financial education, investment products, and employer insurance benefits. The gender gap in perceived access ranges between 23% and 25% across 25 evaluated areas.
Only 24% of women believe their state pension is sufficient for retirement, compared to 49% of men. Access to quality investment products is reported by 36% of women versus 59% of men, and 34% of women feel their employer offers generous insurance coverage compared to 59% of men.
Financial literacy also shows disparities; women are twice as likely to respond with “don’t know” on financial knowledge questions. Only 31% of women say their employer provides high-quality financial education resources, compared to 55% of men.
Racial and Gender Gaps in Wealth-Building Tools
The survey reveals significant race and gender disparities in accessing professional financial advice and investment opportunities. While 62% of men feel they have access to quality financial advice, only 42% of women agree. Investment access is reported by 39% of women versus 64% of men.
Furthermore, only 43% of women feel able to achieve financial milestones like homeownership or funding major life events, compared to 61% of men.
Racial disparities also persist: only 50% of Hispanic and Latino Americans report easy access to suitable bank accounts. Investment access is felt by 45% of Black respondents, 51% of White, and 50% of Latino respondents.
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