June 19, 2023

New COUNTRY Financial® Survey: As Levels of Financial Security Decline, Americans are Keeping Cash on Hand and Putting Money in Low-Risk Funds

 In today’s unpredictable economy, those who work with a financial advisor are more likely to have a diversified approach to reaching financial goals

BLOOMINGTON, ILL. – A new survey from COUNTRY Financial finds the economy continues to have a negative impact on Americans’ finances. The number of Americans who rate their level of financial security as excellent or good declined by 5 points since Q4 2022.   Additionally, Americans are setting aside less money for savings or investments (53%) and feel less confident in their ability to enjoy a comfortable retirement when the time comes (56%) compared to Q1 2023 (55% and 60%, respectively).

Americans are making financial decisions to withstand the current economy such as:

  • 70% plan to keep cash on hand
  • 58% are putting money in savings accounts
  • 39% are using “safer” investment options like CDs and bonds
  • 33% will invest in the stock market
  • 32% plan to work with a financial advisor
  • 32% plan to take on a side gig to earn more money

“Rising interest rates, inflation, and market volatility are influencing financial decisions,” said Chelsie Moore, Director of Wealth Management Solutions at COUNTRY Financial. “The question is, are these financial decisions being made with consideration for how their goals will be impacted?  Or are these panic-button decisions? A financial advisor can help you create a strategy that is tailored to your goals and keeps you on track through economic uncertainty.”

While setting cash aside was the leading response for what Americans are planning to do with their money in today’s economy, it wasn’t the only action they plan to take. The majority (64%) also use at least one long-term investment vehicle like a 401(k), IRA, stocks, bonds, managed account, real estate or an annuity. Those who work with a financial advisor are much more likely to use those types of long-term investment strategies, including:

  • Investing in the stock market (17% of those who have a financial advisor are very likely vs 7% of those who don’t)
  • Put money into CDs or bonds (25% of those who have a financial advisor are very likely vs 8% of those who don’t)
  • Put money into a savings account at a bank (25% of those who have a financial advisor vs 17% of those who don’t)

“We know from previous surveys that Americans feel most comfortable managing short-term finances and things that are within their control, like a budget, which is why they may feel comfortable keeping cash on hand. However, the same survey told us Americans want help with complicated, long-term goals like managing their investments. So, when the going gets tough, as it has in our recent economic environment, we encourage people to reach out to a financial advisor for their expertise to help them get through it.”

Connect with a local COUNTRY Financial representative and learn more about how a financial advisor from COUNTRY Financial can help.

 

Media contact

carrie.skogsberg@countryfinancial.com

COUNTRY Financial® is a family of affiliated companies (collectively, COUNTRY) located in Bloomington, IL. Learn more about who we are.

COUNTRY Financial® is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, COUNTRY), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.

About the COUNTRY Financial Security Index®  

Since 2007, the COUNTRY Financial Security Index has measured Americans' sentiments of their personal financial security. The Index also delves deeper into individual personal finance topics to better inform Americans about the issues impacting their finances.  

The COUNTRY Financial Security Index was created by COUNTRY Financial and is compiled by Ipsos an independent research firm. Surveys were conducted using Ipsos' KnowledgePanel®, a national, probability-based panel designed to be representative of the general population and includes responses from approximately 1,330 U.S. adults for national surveys. The margin of sampling error for a survey based on this many interviews is approximately +/- 3.2 percentage points at the 95% confidence level.  

About COUNTRY Financial®     

The COUNTRY Financial® group (www.countryfinancial.com) serves about one million households and businesses throughout the United States. It offers a wide range of financial products and services from auto, home, business and life insurance to retirement planning services, investment management and annuities.  

Visit COUNTRY Financial on Twitter @HelloCountry, on Facebook @COUNTRYFinancial and on Instagram @countryfinancial.  

About Ipsos      

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Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.

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