Americans have lost confidence in their personal level of financial security, but it does not seem to have dampened their optimism about the year ahead. That's according to the survey for this month's COUNTRY Financial Security Index. Despite a 1.1 point dip in the Index in December, 72 percent of Americans think next year will be the same or better for them financially.

The drop in the December COUNTRY Index to 68.8 is the result of Americans' greater pessimism about nearly all aspects of their current financial security, especially about their ability to meet long-term financial goals for college funding and retirement.

"The uncertainty of the economy has hit home with Americans and is definitely having an effect on how they feel about their present situation," says Keith Brannan, vice president of Financial Security Planning at COUNTRY. "While optimism about 2008 is encouraging, it is important that people turn their optimism into action. Review your finances and adjust your spending and saving habits should the current turmoil continue or get worse."

Retirement and College Planning in Jeopardy

- Just 64 percent are confident they will have the resources to send their children to college, a dramatic six point decline since October and the lowest level recorded this year.

- Those confident in their ability to enjoy a comfortable retirement slipped three points to 63 percent in December.

"It's sometimes difficult to think about long-term financial goals when there are so many near-term pressures during the holidays," adds Brannan. "But with a little planning and discipline it's possible for Americans to spread some holiday cheer and save for the future at the same time."

2007 COUNTRY Financial Security Index in Review

The COUNTRY Financial Security Index averaged 69.2 in 2007, with its highest reading in February (70.2) and lowest in June (68.2). Of all measures comprising the COUNTRY Index, college funding and asset protection sentiments fluctuated most throughout the year. Most stable were people's perception of their overall level of financial security and their ability to set aside money for retirement, savings or investments.