Americans Ring in 2015 with Financial Optimism

On the heels of a successful 2014, Americans are feeling confident about their 2015 financial outlook. According to the latest COUNTRY Financial Security Index survey, 85 percent of Americans say their personal financial situation will be better or remain the same in the year to come, with 38 percent saying it’ll be better. Millennials are the most optimistic--half of them say their finances will improve.

Many people started 2015 on a high note financially. Among those who set financial goals for themselves in 2014, an overwhelming majority (80 percent) say they achieved at least some of their goals. Nearly a quarter of them (24 percent) say they achieved all of them.

This year, Americans are aspiring to continue their financial success by making a budget and maintaining it, as well as paying down debt and increasing their retirement savings.

• Seventy percent say they are likely to set a budget and stick to it in 2015. That includes 54 percent of people who did not set financial goals in 2014.
• Among those who accomplished some or all of their financial goals last year, 80 percent say they are likely to again set a budget and stick to it this year.
  For Americans with debt, 30 percent say 2015 is the year they will probably get out of debt.
• When it comes to making progress on the long-term goal of saving for retirement, however, Americans are split. While 49 percent say 2015 will be a year they contribute more to their retirement savings, an equal number say it’s only somewhat likely or not likely at all that they will contribute more in the year to come.

“Americans have a lot to be proud of after 2014, especially their dedication to achieving their goals and budgeting, which are key components of becoming financially secure,” says Troy Frerichs, director of wealth management at COUNTRY Financial. “In 2015, many are highly focused on shorter-term goals like saving money and paying down debt. However, it’s important not to lose sight of the long-term challenges, and no annual financial plan is complete without resolutions to work toward those longer-term goals like retirement.”

Charitable giving takes a back seat

While Americans are planning to budget and improve their financial security in 2015, fewer seem to be factoring in charitable donations than in years past.

• Fifty-eight percent say they are likely to donate their time or money to charities in 2015.
• According to a Gallup poll in December 2013, 83 percent of Americans said they donated their money and 65 percent said they volunteered their time in 2013.

Americans age 50-64 are most likely to donate their time or money in 2015, with those ages 18-29 being least likely, 70 and 44 percent, respectively.

A not-so- secure 2015

No matter the confidence one might have in starting 2015, the threat of cyber attacks continues to worry a majority of Americans and gives new meaning to financial “security.”

• Fifty-one percent of people are very or somewhat concerned they might be the victim of a data breach this year.
• Cybersecurity fears tend to increase with age. Millennials are the least worried, while 50-64 year olds are the most, 34 and 63 percent, respectively.

The COUNTRY Financial Security Index was created by COUNTRY Financial and is compiled by GfK, an independent research firm. Surveys were conducted using GfK’s KnowledgePanel TM, a national, probability-based panel designed to be representative of the general population and includes responses from approximately 1,000 U.S. adults for national surveys.

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By Ayo Mseka
Editor-In-Chief