Consumers shift financial focus to long term

04.27.09
By Timothy Jones

With any extra funds being funneled toward debt reduction by a number of American families for some time now, a new survey shows that households are beginning to save again.

COUNTRY Financial Security Index results reveal that 47 percent of those surveyed have recently been able to set aside money for savings accounts or new investments. This is the first uptick in this factor of the index since last June.

The financial indicator also reveals that saving and investing is only in the early stages given that 20 percent of respondents still consider their financial security to be "poor."

With words of encouragement for the families that still feel underwater financially, Keith Brannan, vice president of financial security planning at COUNTRY said, "As bad as it might seem, most families can get back on track and build a financially secure future for themselves, no matter where they're starting from."

In fact, more consumers are confident they will be able to meet financial obligations for their kids' college tuition, but some remain wary about their outlook for retirement.

According to COUNTRY, the major factor in the overall index decreasing in April was people expressing uncertainty over retirement planning. Brannan said these types of concerns are emerging now because consumers' mentality is shifting from day-to-day credit worries to more long-term reservations.

Financial concerns are so pressing for some families that older adults in the workforce are considering putting off retirement for a few more years to earn extra money and hopefully live more comfortably later in life.

A recent American Institute of Certified Public Accountants poll also said that a greater number of individuals are waiting to buy a home, go to college, marry and have children until they are in a better financial situation.

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Many people are worried about retiriment funds