|Copyright:||Copyright Business Wire 2010|
|Source:||Business Wire, Inc.|
The Principal Financial Well-Being Index, which surveys both American workers at growing businesses with 10 to 1,000 workers and retired Americans1, is released quarterly by the
Eighty-five percent of workers who are eligible for defined contribution retirement plans reported that they are currently participating, up from 81 percent of workers a year ago. When asked what changes they have made, if any, to their 401(k) account due to current economic conditions, 18 percent reported that they have increased their contributions compared to 13 percent in the fourth quarter of 2009.
Meanwhile, 45 percent of workers and 43 percent of retirees are either very concerned or extremely concerned about the future of Social Security. While a third of retirees (32 percent) said
When asked how they would manage if
“With mounting worries about
Americans hopeful about 2011 with solid New Year’s resolutions in place
With 2011 on the horizon, many Americans are feeling more optimistic. Forty percent of workers and 39 percent of retirees think the economy will improve to some degree in the next year, both significant increases from third quarter 2010. The percentage of workers who are extremely happy with their current financial well-being is up significantly to 31 percent from 19 percent from last quarter.
This optimism is reflected in actions Americans plan to take to improve their overall financial well-being in the New Year. Twenty-nine percent of workers are optimistic about the economy and their ability to rebuild their finances, up from 21 percent from last quarter. Twenty-four percent of retirees said they were optimistic, twice as many as last quarter.
When asked about any financial resolutions for the New Year, the top two selected by workers were plans to pay off credit card debt (35 percent) and put a set amount of money into savings each month (30 percent). Retirees’ top resolution was to reduce their spending by a specific amount each month (19 percent) followed closely by paying off credit card debt (17 percent) and putting a set amount of money into savings each month (15 percent).
“We are seeing some confidence return as Americans are starting to feel better about their finances and the economy, which is resulting in some positive behavior for long-term savings. While the road may still be bumpy, many Americans are taking personal responsibility to improve both their short and long term financial well-being,” said Vandermillen.
Key findings on holiday spending plans:
- Due to the economy, 41 percent of workers and 39 percent of retirees said they would spend less per gift this holiday season. Thirty–eight percent of workers and 31 percent of retirees will scale back on the number of people for which they buy gifts.
- Twenty–two percent of workers and 24 percent of retirees will be traveling less this holiday season.
- Sixty–one percent of workers and 57 percent of retirees plan to spend the same amount of money as they did last year for the holidays. Fewer workers (31 percent compared to 46 percent in 2009) and fewer retirees (39 percent compared to 46 percent in 2009) plan to spend less money than they did last year for the holidays.
Find the full report, past results and a downloadable graphic at www.principal.com/wellbeing. For more news and insights from The Principal, connect with us on Twitter at http://twitter.com/ThePrincipal.
This Principal Financial Well-Being Index SM survey was conducted online within
This is one in a series of quarterly studies to identify and track changes in the workplace of small and mid-sized (growing) businesses. The first Principal Financial Well-Being IndexSM survey was conducted in
1 Survey of 1,159 employees and 528 retirees conducted
2 “The Principal Financial Group” and “The Principal” are registered service marks of
3 As of