Americans are regaining confidence in their financial security. The COUNTRY Financial Security Index® increased for the third straight month. Higher savings rates and more positivity about debt repayment pushed the reading up one point to 65.8, the highest level since December 2009.
Confidence in several aspects of financial security rose to its highest level in at least two years.
• Half of Americans were able to set aside money for savings, up six points to a three-year high.
• Eighty percent are confident in their ability to pay debts, up three points since December. This is its highest reading since October 2008.
• Americans rating their overall financial security positively increased two points to 41 percent. Confidence in the ability to retire comfortably rose three points to 58 percent. Both are at their highest level since December 2009.
“It’s been a while since Americans were feeling this optimistic. Steady improvements since September could signal people are breaking the recession mindset,” says Keith Brannan, vice president of Financial Security Planning at COUNTRY Financial. “Now’s the time to create or revisit a financial plan that addresses both short- and long-term goals, which can help maintain this optimism.”
Middle Income Earners Feel More Secure
While other income groups’ financial sentiments remained stable or declined, middle income earners grew more upbeat. Forty-eight percent with an annual household income of $60 – $75K and 53 percent with an income of $75 – $100K rate their overall financial security positively. These are up five and nine points from December, respectively.
30-39 Year Olds Drive Overall Optimism
Of all the age groups, 30 to 39 year olds showed the largest uptick in their confidence this month.
• Fifty-eight percent were able to set aside money for savings, a 15-point jump.
• Sixty-one percent are confident in their ability to retire comfortably, up eight points.
“Financial security is achievable no matter your age or income,” adds Brannan. “The key is simply to establish financial goals and stick to them.”
Published by Mike Woods. Mike Woods is the broker/owner of msWoods real estate, LLC. Staffed with over 40 agents, msWoods assists buyers in search of Indianapolis homes for sale. msWoods also helps buyers throughout Central Indiana, including those in search of Fishers real estate. In his spare time, Mike Woods blogs about Indianapolis related topics, such as things to do in Indianapolis.