Americans optimistic about their personal finances

Americans optimistic about their personal finances -


A recent study of The Hartford found that Americans are optimistic about their personal finances and saving for retirement. The study shows increased participation in 401 (k) s and other defined contribution plans, especially among baby boomers, Generation X and men. More Americans say they are confident that their personal finances will improve over the next 12 months, and this trend is reflected in more people saving for retirement.
The Hartford found that participation in 401 (k) s and other defined contribution pension plans by employed adults rose to 76% overall in 2011, up 71% in 2010 and up 63% from two years ago. Three groups showed the biggest gains:

• participation-boomers closest to retirement increased to 79%, against 71% in 2010 and 63% in 09.
• 77% of generation X or 32-46 years contributed to their employer pension plan in 2011, an increase of 71% in 2010 and 67% in 09
• participation men jumped to 81%, against 71% last year and 66% two years ago.

The only disappointment in the conclusions was that the participation of young workers 19-31 years showed a slight decrease, and the participation of women is generally flat. September 10 women contributed to their employer's retirement plan, unchanged from the previous year when women showed greater improvement than men. Participation in retirement plans amongst Gen Y declined 2%.
Overall, most Americans were surprisingly optimistic about their financial future. Asked about the next 12 months, 34% of survey respondents said they were "extremely" or "very confident" that their lives would be improved. Those expressing optimism cited expected improvements in personal finances:

• 53% of said debt reduction and increased savings were part of their financial goals
• 52% said they were "extremely" or "very" confident their personal finances continue to improve
• 42% said their financial future was their main goal.

the search for the Hartford also found that Americans feel better about their lives and 26% said they "live comfortably" in 2011, a 9% increase in 2010. Nearly half of all respondents (48%) said they "meet my expenses with a little left over for extras."
If you are in one of these groups, perhaps the moment has come to reach out to an agent or a consultant to financial guidance necessary to make financial decisions appropriate long-term.