Tuesday, August 16, 2011
The persistent storm clouds hanging over the U.S. economy have been especially active recently. The uncertainty surrounding the debt ceiling debate, Standard and Poor's U.S. credit rating downgrade, stock market declines and the stubbornly-high unemployment rate created a "perfect storm" of economic anxiety this summer. The result left a significant impression on Americans' financial security sentiments. The COUNTRY Financial Security Index® dropped 1.3 points to 62.4 in August, the lowest reading in the survey's history.
This decrease reflects record-setting lows in multiple categories. Less than half (49 percent) think they will have enough money for a comfortable retirement, down two points from a previous all-time low in June. Also at record lows were those who rate their financial security positively (34 percent) and those confident in their ability to pay debts (74 percent). Both were down three points since June. This perfect storm also dampened Americans' outlooks. More than half (54 percent) say their level of financial security is getting worse.
"Whether it's high unemployment or the housing market volatility, Americans have been dealing with economic instability for some time," said Keith Brannan, vice president of Financial Security Planning at COUNTRY Financial. "Taken together, these factors tested people's fiscal endurance. While you can't prevent a whirlwind of economic woe, you can take steps to weather the storm."
For tips to fortify your finances, visit www.countryfinancialsecurityindex.com for an exclusive video interview with Brannan.
Savings Decline in August for Fifth Year in a Row
The multitude of high-profile fiscal stressors weren't the only things affecting financial security sentiments this month. For the past five years, Americans have found it difficult to save from June to August. Just 42 percent were able to set aside money for savings and investments, a three-point drop from June.
"The summer can be a challenging time to save," added Brannan. "Everyone is eager to enjoy the weather and perhaps travel. Parents also may have to pay for college tuition, daycare and back-to-school supplies over the summer. If you can anticipate these expenses, be sure to factor them into your budget."
Topic August 2010 June 2011 August 2011 ---------------------------------------------------- ----------- --------- ----------- COUNTRY Financial Security Index 63.7 63.7 62.4 ---------------------------------------------------- ----------- --------- ----------- Rate overall financial security as excellent or good 39% 37% 34% ---------------------------------------------------- ----------- --------- ----------- Able to set aside money for savings and investments 43% 45% 42% ---------------------------------------------------- ----------- --------- ----------- Enough money to enjoy a comfortable retirement 53% 51% 49%
The August COUNTRY Financial Security Index was polled on July 26, 2011.
To access embeddable data charts and video interviews about the latest COUNTRY Index data please visit www.countryfinancialsecurityindex.com . Individuals can also learn more and compare their own results with the national COUNTRY Financial Security Index. The next COUNTRY Financial Security Index will be released October 18, 2011 and subsequently every other month.
The COUNTRY Financial Security Index
The COUNTRY Financial Security Index(R) 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 COUNTRY
COUNTRY Financial (http://www.countryfinancial.com) 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.
Rasmussen Reports is a media company specializing in the collection, publication and distribution of public opinion information.
We conduct public opinion polls on a variety of topics to inform our audience on events in the news and other topics of interest. To ensure editorial control and independence, we pay for the polls ourselves and generate revenue through the sale of subscriptions, sponsorships, and advertising. Nightly polling on politics, business and lifestyle topics provides the content to update the Rasmussen Reports web site many times each day. If it's in the news, it's in our polls. Additionally, the data drives a daily update newsletter, the Rasmussen Report on radio and other media outlets.
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