Bankrate.com has shown today in its December Financial Security Index that Americans are feeling more financial security now compared to any point in the last six months. This reported index has risen by 3.3 points to 95.8, and it noted that this was the highest reading since 97.8 reported in June. The good news is that this is the best reading in some time, but the overall index reading under 100 indicates that there is still a degree that “consumers are feeling less financially secure than one year ago.”
While many surveys conducted elsewhere have shown improvement overall but with real choppiness, Bankrate noted an improvement in every single component of the index: job security, savings, debt, net worth and overall financial situation.
The big surprise is that job security was the single largest improvement. Those feeling “less secure” fell from 28% to 18%. Those feeling the same level of job security came in at 64%, which is the highest level seen since this poll started a year ago.
In job security, those under age 30 feel more secure than other age groups and those age 50 and above feel less secure than younger age groups.
In savings, the under-30 age group feels more comfortable than other age groups and those age 50-64 and retirees are feeling less secure.
In debt, the observation is one you could guess without reading. Those with annual household income of $75,000 or more are more comfortable than others; parents and households with income under $30,000 were less comfortable than anyone else.
The wealth gap isn’t improving in net worth… Households with annual income of $75,000 or more are most likely to report higher net worth than one year ago, while those with household income under $30,000 are most likely to report lower net worth.
As far as the overall financial situation, the under-30 age group is most likely to report a better overall financial situation, while “those age 50-64, households with annual income less than $30,000 and the unemployed are the groups most likely to report their overall financial situation as worse today than one year ago.”
Better… still nothing great. The new normal.
JON C. OGG
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