Consumer optimism refuses to die

12.03.08
By Timothy Jones

American consumers are a hardy bunch. The international financing system has gone into a meltdown not seen - according to many - since the dark days of 1929, and the knock-on effect on your average Joe has not been slow in following.

Despite this financial doom and gloom, the majority of North Americans surveyed in a recent poll - 63 percent to be precise - say they remain optimistic about their personal financial future.

Only one in five was particularly negative - surprising, perhaps, given the daily outpouring of downbeat economic data emanating from the offices of federal economists.

Consumers were less forgiving about the general state of the economy, however, according to the survey conducted by the Allianz Life Insurance Company of North America.

Nearly three quarters of respondents confessed to feeling particularly negative about the economic direction of the U.S heading into 2009.

This was the highest level of concern noted internationally. Hungary ranked second, with 68 percent of citizens of the central European nation lacking confidence in their country's economic direction.

Specific concerns were expressed by American consumers too. Nearly six in ten were concerned about their retirement, a similar amount voiced disquiet at the future of the Social Security system, and half of those surveyed worried about the financial costs of illness or long-term care

"Given the current economic crisis, it is more important than ever for consumers to carefully evaluate their financial planning options to ensure they are leveraging products such as annuities and life insurance that offer protection and income regardless of market performance," argues Gary Bhojwani, president and CEO of Allianz Life.

The back-to-basics approach to personal finance has seen the increasingly savvy use of existing credit options as people try to get a handle on their credit card debt while navigating the demands and temptations of the holiday buying season.

Consumer advocate Gerri Detweiler recently told The Tennessean, "If you are using several cards, it's easy to lose track of the balance. Pick the one that gives you points or perks and that you can and do pay off in full every month for your holiday purchases."

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Americans stay optimistic about their personal future - if not that of the country