National Press Release
COUNTRY Financial Security Index: Americans’ Financial Security Falls Further at Mid-Year
COUNTRY Financial Security Index records second consecutive decline
Bloomington, Ill., June 19, 2007 – Americans' perception of their financial security continued to slip in June, as the COUNTRY Financial Security Index declined 1.2 points to 68.2. The latest reading marks the second consecutive decline and is two points lower than the beginning of the year when the Index was 70.2. It also marks a decline across the board in every category since the Index was created.
The COUNTRY Index records the perceived financial security of respondents on a scale of 0-100 with 100 indicating the highest level of security. It is based upon responses to a series of baseline survey questions asked in a national survey of at least 3,000 randomly selected American adults every other month.
Americans Continue to Feel Financial Squeeze
- The number of people who set aside money for savings or investments declined again in June to 53 percent.
- Just under half (48 percent) of Americans rated their personal level of financial security as excellent or good in June, down from 51 percent at the beginning of the year.
Pessimism Grows for Long-Term Financial Goals
- There was a two-point decline in the number of people confident they will have the resources to send their child to college. Sixty-five percent (65%) now have that confidence.
- Concerns about retirement also increased in June, as just 62 percent said they are confident they will have the financial resources for a comfortable retirement, down from 64 percent in April.
“High fuel costs, a slump in the housing market and anxiety about the situation in Iraq might explain why Americans have felt a pinch in their financial situation throughout the first half of the year,” says Keith Brannan, director of the Financial Security Office at COUNTRY. “But it is important to remember even though the overall Index dropped to 68.2, it’s still a passing grade.”
Survey highlights:
| Topic | National February 07 | National April 07 | National June 07 |
|---|---|---|---|
| Rate overall financial security favorably | 51% | 49% | 48% |
| Set aside money for savings/investments | 56% | 54% | 53% |
| Confident family would live comfortably if you died or were disabled | 68% | 66% | 64% |
| Confident in ability to pay debts as they come due | 81% | 80% | 77% |
Individuals can learn more and compare their own results with the national COUNTRY Financial Security Index.
The next COUNTRY Financial Security Index will be released on August 21 and subsequently every other month.
The COUNTRY Financial Security Index
The COUNTRY Financial Security Index 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 Insurance & Financial Services and is compiled by Rasmussen Reports, LLC, an independent research firm, based on a national telephone survey of 3,000 Americans.
The margin of sampling error for a survey based on this many interviews is approximately +/- 3 percentage points with a 95 percent level of confidence.
About COUNTRY
COUNTRY Insurance & Financial Services 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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