November 16, 2022

Despite an Economically Tumultuous Year, Americans Feel Optimistic About Their Finances

A new COUNTRY Financial® Security Index finds Americans are feeling more financially secure and confident in their ability to retire comfortably as the year comes to a close. 

BLOOMINGTON, Ill. – Despite rising inflation and continued threats of a recession, Americans are feeling confident that their finances will be in order when the time comes for them to retire. In fact, they are just as confident now as they were in 2021 before the bear market took hold, with six in ten Americans (63%) saying they will be able to retire comfortably when the time comes. 

A new COUNTRY Financial Security Index, which has regularly evaluated Americans’ financial security for the past 15 years, reveals 59% of Americans rated their financial security positively, compared to 61% who answered the same this time last year – relatively consistent.  Furthermore, Americans’ overall sentiment of financial security increased six percentage points from Q3 to Q4 of this year (53% to 59%). 

However, Americans’ saving behaviors don’t quite match their optimistic attitudes. Though many say they’ll have enough money to retire, their ability to save has declined slightly from a year ago, with 55% of Americans reporting they were able to set aside money for savings and investments in the last two months, compared to 58% a year ago. 

“The survey results are somewhat surprising given the poor year-to-date results in both the stock and bond markets,” said Troy Frerichs, Vice President of Investment Services at COUNTRY Financial. “However, even with the poor financial market performance and economic uncertainty from rising inflation, the job market remains strong, and wages have increased substantially in the past year. This could help explain some of the confidence.”

Baby Boomers are the most likely (73%) to say they are somewhat or very likely to have enough money saved to enjoy a comfortable retirement. Six in ten Millennials (60%), more than half of Gen X (56%) and half (51%) of Gen Z feel confident as well. 

Boomers are also the most likely to have set aside savings in the last two months (59%), followed by Millennials (57%), Gen Z (50%) and Gen X (49%). 

Those with a Financial Professional Feel Most Confident 

When it comes to planning for their financial futures, Americans report they are most looking for help with long-term strategies like planning for retirement (27%), managing investment portfolios (20%) and getting through today’s economic challenges like rising interest rates and inflation (23%).

Those who have the help of a financial professional feel significantly better about their finances in a number of areas, including: 

• higher level levels of financial security (80% compared to 53% among those who do not have a planner),
• more likely to be able to set aside money for savings or investments (71% compared to 51% among those who do not have a planner),
• more confidence in their ability to pay their debts (96% compared to 76% among those who do not have a planner), and
• higher expectation in their ability to retire comfortably when the time comes (87% compared to 56% among those who do not have a planner)

To learn more, visit countryfinancial.com. 

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