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Americans' Financial Security Sentiments Drop to Record Low
This entry was posted on 4/16/2008 11:20 AM and is filed under Psychology.
BLOOMINGTON, Ill., April 15,
2008 (PRNewswire):Amid fears of a possible recession, Americans
feel less secure about their finances now than at any other time in the last 14
months, according to the COUNTRY Financial Security Index(SM). The Index
recorded its third consecutive decline in April, slipping .7 points to 67.8,
marking its lowest reading to date. The latest COUNTRY Index reveals Americans in the 30-39 year
old age group feel the hardest hit by economic turmoil in recent months. Just
53 percent of 30-somethings were able to recently set aside money for savings
and investments and only 59 percent are confident in their ability to save for
a secure retirement, both eight-point declines since February. "It is understandable that Americans in their 30s are
rattled about their finances during a volatile economy" says Keith
Brannan, vice president of Financial Security Planning at COUNTRY Financial.
"This group often struggles with several financial priorities. They could
be buying a home, saving for their child's college, helping an aging parent and
saving for their retirement all at the same time. A turbulent economy only
makes it worse." Nearly all aspects comprising the COUNTRY Index declined in
April to their lowest level on record since the measure was launched in
February 2007.
The percentage of Americans rating their personal financial situation as excellent declined in April, dropping another point to just 13 percent.
Those unable to set aside money for savings or investments rose two points to 45 percent.
More than one in five (21 percent) are not confident in their ability to pay their debts as they come due, a one point increase since February.
After holding relatively stable in recent months, Americans'
optimism about long term goals is beginning to wane. Since February, those
confident in their ability to save for a secure retirement dropped three points
to 60 percent, and those confident their family would live comfortably if they
died or were disabled dropped two points to 62 percent. "Now is the perfect time to evaluate your financial
security and make the necessary changes," adds Brannan. "Many Americans
are starting to receive tax refunds and stimulus payments from the federal
government. Using this money wisely, like paying down debt and long-term
investing, will help anyone become more financially secure. Individuals can learn more and compare their own results
with the national COUNTRY Financial Security Index by visiting http://www.countryfinancialsecurityindex.com/. The next COUNTRY Financial Security Index will be released June
17, 2008
and subsequently every other month. The COUNTRY Financial Security Index The COUNTRY Financial Security Index(SM) is a bi-monthly
measure of Americans' sentiments toward their overall financial security. It is
an aggregate of various factors comprising financial security including savings
and investments, financial planning, retirement, education and asset
protection. The COUNTRY Index was created by COUNTRY Financial (http://www.countryfinancial.com/)
and is compiled by Rasmussen Reports, LLC (http://www.rasmussenreports.com/),
an independent research firm, based on a national telephone survey of at least
3,000 Americans. The margin of sampling error for a survey based on this many
interviews is approximately +/- 2 percentage points with a 95 percent level of
confidence.
