MUNCIE, Ind.—Despite all the complaints about the rising cost of streaming services, a new survey from First Merchants Bank indicates that setting aside money for streaming each month is still a top priority for U.S. consumers, with online video subscriptions taking precedence over retirement investments in household budgets.
Nearly half of the survey respondents (47%) listed streaming as a top spending priority, while only a quarter of them (26%) prioritized adding to their retirement savings.
First Merchants Bank found millennials to be the most likely to prioritize TV streaming, with 49% listing it as a key factor in their regular budgeting, closely followed by Generation X at 47% .
Because of ongoing inflation and a high cost of living, the researchers said, many felt they needed to choose between spending their money on daily enjoyment or future investments. The immediate reward offered by streaming services appears to be more important than long-term savings, with just 21% of millennials and 27% of Gen X prioritizing saving for their retirement.
The survey also found that on average, 58% of adults overspend every montgh. Another recent study found that 55% of Americans are concerned they can't achieve financial security for retirement.
"Most people rely on retirement savings to help them manage their expenses once they stop working,” Dahna Sanders, vice president and senior workplace banking representative at First Merchants Bank, said. “While Social Security provides support, for many it is unlikely this will match monthly expenditure, so it's important to prepare to ensure financial health once you leave work."
