National Press Release
Americans' Financial Security Sentiments Drop in October
Men, pre-retirees and high income groups trigger decline
Bloomington, Ill., October 21, 2008 — The mounting economic crisis is eroding Americans' optimism in their financial security. The COUNTRY Financial Security IndexSM slid 1.1 points to 68.8 in October, fueled by dramatic declines among men, pre-retirees and high income individuals.
Americans are feeling much less secure about their nest eggs, their ability to pay debts and set aside money for savings or investments. Overall, 32 percent are not confident they will have a comfortable retirement and 33 percent are not confident they can send their children to college. Further, 45 percent were unable to save or invest recently and 19 percent are not confident they can pay their debts. The results were even worse among men, older Americans and those in higher income groups.
"Men, who tend to be more aggressive investors than women, and those nearing retirement are understandably shaken by the recent impact to their portfolios and retirement accounts," says Keith Brannan, vice president of financial security planning. "The circumstances can be overwhelming and it's easy to feel like your financial security is out of your control. Stay calm and talk to a knowledgeable professional who can help you create a tangible plan."
Men's concerns spike, women's sentiments stable
- Men grew more pessimistic about all measures comprising their financial security in October, while women's sentiments held steady. There was an 11-point drop to 67 percent among men who feel confident they could send their children to college and a seven-point slide to 54 percent in men able to save or invest.
Pre-retirees hardest hit
- Those 50-64 years old grew more pessimistic about their financial security in October than any other age group. Just 61 percent are confident they will have the money to retire comfortably and 54 percent were able to save or invest recently, both down six points since August.
Higher income Americans express heightened concerns
- While financial security sentiments among Americans earning more than $100,000 annually have bucked the economic trend and remained stable year to date, their concerns spiked in October. There was a 27-point dive to 54 percent in those able to set aside money for savings or investments and a 34-point drop to 52 percent in those confident they will have the financial resources to send their children to college.
"Virtually all Americans are feeling the squeeze of the current economy in some way," adds Brannan. "But now is not the time to cash out your investments or make dramatic changes to your 401(k). If you do so, you will likely lose money. Instead, consider redirecting any new money you contribute to more stable investments until the market recovers."
Survey highlights
| Topic | October 2008 | August 2008 | October 2007 |
|---|---|---|---|
| COUNTRY Financial Security Index | 68.8 | 69.9 | 69.9 |
| Not confident will have the money to enjoy a comfortable retirement | 32% | 30% | 30% |
| Not confident will have the financial resources to send children to college | 33% | 30% | 28% |
| Not confident family would live comfortably if died or disabled | 30% | 27% | 31% |
Full data is available at www.countryfinancialsecurityindex.com.
Individuals can learn more and compare their own results with the national COUNTRY Financial Security Index SM. The next COUNTRY Financial Security IndexSM will be released December 16, 2008 and subsequently every other month.
The COUNTRY Financial Security Index
The COUNTRY Financial Security IndexSM 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 and is compiled by Rasmussen Reports, LLC, 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.
About COUNTRYCOUNTRY Financial serves about one million households and businesses throughout the United States. It offers a full range of financial products and services from auto, home and life insurance to retirement planning services, investment management and annuities.
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