Americans Happy With Financial Security Outlook: Country Financial Survey

Americans are beginning 2011 with renewed confidence, as financial security sentiments reached their highest level since April 2010.

The Country Financial Security Indexrose 0.8 points to 64.9 in February. This marks the first time Americans have started the year with improved sentiments since the Country Index began in 2007.

The optimism may be due to Americans’ sticking to their fiscal resolutions. According to last month’s Country Financial survey, 21 percent planned to boost savings in 2011. Nearly half (47%) set aside money this month, up three points since December and the largest percentage in more than a year. Forty-one percent rate their overall level of financial security positively, up three points from December. Confidence in the ability to pay debts remained stable at 76%.

“For three years, we’ve seen signs of a holiday financial hangover through a decrease in the Country Index," Keith Brannan, vice president of Financial Security Planning at Country Financial, said is a statement. “Americans appear to be bucking this trend, perhaps because people spent within their means in late 2010. It’s encouraging that Americans are feeling more optimistic and short-term sentiments have improved. Yet, it’s important to remember that financial security is also about the long-term and planning for the future.”

Long-term confidence still uncertain

Despite recent increases in short-term confidence, pessimism still persists in regards to long-term financial security.

• Those confident in their ability to send their children to college dropped four points to 55%.
• Americans who say they will have enough money to enjoy a comfortable retirement dipped one point to 54%.

Women’s short-term optimism increases; men more pessimistic

• Women who rate their overall financial security positively (41%) jumped five points. Men, on the other hand, dropped one point to 41%.
• Forty-six percent of women say they were able to save this month, up 8% from December. Men saying the same dipped two points to 48%.