Survey Finds Increased Financial Optimism

Statue of Liberty, Jersey City view

A recent survey by Fidelity Investments suggests that people are feeling more optimistic about their financial situations than they did five years ago. More than half who considered themselves scared or confused in 2008 now believe that they are confident or prepared. Among the primary reasons for this are increased retirement savings, decreased debt, the creation or build-up of emergency funds, and research into the availability of guaranteed income options. At the outset of the financial crisis, the average respondent lost 34% of household assets, 17% lost a job (sometimes both heads of household), and 35% sustained a large drop in income. The most common sources for guidance are financial professionals, a spouse, and online research. Many respondents believe in taking personal responsibility for saving, but large numbers also see it as a partnership with financial institutions, employers, and the government. Over two-thirds believe that the country is still in a recession, with about one in five thinking that it is over. If this optimism continues to take hold, it will be interesting to see for how long it holds. The annual Retirement Confidence Survey has seen historic low levels of confidence in recent years, as discussed in a recent post.

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