"The recession is a wake-up call for many Americans and their response is an appropriate one," says Keith Brannan, vice president of Financial Security Planning at COUNTRY Financial. "By preparing for and navigating an economic downturn with smart planning, they are more likely to take the actions needed to achieve financial security no matter where they are starting from."
However, while Americans may have an increased focus on their finances, they are not necessarily upbeat when it comes to their golden years. Six in ten think their financial situation in retirement will be the same (31 percent) or worse (29 percent) as their parents. This sentiment is even more pronounced among those in the 40 to 49 year old age group, with 67 percent saying their financial situation will be the same or worse than their parents.
"The hope for people is a tangible plan," Brannan says. "Having a plan, and following through with it, is key. Most families can build a financially secure future, even if they might not realize it right now."
Caring for Parents Weighs on Americans' Finances
Overall, four in ten Americans say it is very (19 percent) or somewhat likely (22 percent) they will have to help their retired parents financially. And, for the so called "Sandwich Generation," four in ten who have children at home think they will have to provide financial help to their parents. These competing priorities emphasize the need to plan ahead.
Recession has Varying Impact on Men versus Women
Women (56 percent) are more likely than men (44 percent) to say they're thinking more seriously about their finances after watching their parents endure the recession. However, they are more pessimistic about the state of their financial situation once they reach retirement. Thirty-five percent of women say their finances will be worse than their parents', compared to just 28 percent of men.
