Experience Stern | News & Events

Wireless News
WLNW
(c) 2011. Close-Up Media, Inc. All rights reserved.

Results of a national survey designed to gauge Generation Y's, Generation X's and Baby Boomers' perceptions of the economy and its effects on their financial futures found that, regardless of age or gender, a significant percentage of Americans are confused about the best way to plan and manage a financial strategy, according to a release from the Guardian Life Insurance Company of America.

"The survey results clearly indicate a national need for comprehensive, lifelong financial education to equip the public with the guidance and tools they need to build a sound strategy for financial security, from young adulthood to retirement, in turbulent times and calmer cycles alike," said Michael Ferik, senior vice president of Individual Life at Guardian, who presented the survey results at Guardian's third annual issues forum, Financial Guidance for the Whole Life: Generations Y, X and Boom, in a release.

"Today's forum of financial experts initiated a discussion that we hope will serve as a springboard to a national agenda on how the public and private sectors can better serve Americans at every stage of life to feel that they have some control over their financial destiny.

"Members of Gen X may have been disproportionately impacted by the turmoil of the economic landscape, but this Guardian survey indicates that all Americans are exhibiting uncertainty and, at worst, complete inertia when it comes to financial decision-making.

"Those of us in the financial services industry know that solutions already exist for people at every stage of life to enhance their economic security. The decision-making tools and financial advice are available. Our challenge is in breaching the cacophony of information and helping people move past inaction. That is the conversation we have started today, and it's one that we must continue, because our society's future may well depend on it."

Ninety-two percent surveyed say they are confident in their personal financial decision making.

Joining Ferik in the panel discussion was Carol O'Rourke, a Certified Financial Planner and executive director of the Coalition for Debtor Education, a nonprofit organization housed at Fordham University Law School, and Lawrence White, economics professor and economics department deputy chair at New York University's Stern School of Business and co-author of Guaranteed to Fail: Fannie Mae, Freddie Mac and the Debacle of Mortgage Finance, published earlier this year.

Carmen Wong Ulrich served as the forum's moderator.

Among factors the survey looked at were people's perceptions of the direction the economy is heading. From a generational standpoint, Gen X 82 percent believes the economy is headed in the wrong direction and feels the least financially secure 47 percent of any group. Gen X members, 59 percent, are also the most concerned that they will not have enough money saved for retirement.

As for how their perceptions of the economy have impacted their overall financial decision making, the survey revealed that two-thirds of respondents from the general population (65 percent) are more likely to keep their money in a savings account rather than invest it, despite the fact that 62 percent of them feel that a down market is an opportunity.

However, 60 percent of respondents still believe it is important to keep investing in their retirement fund because the economy is less stable, with skittish Gen X being the exception: 47 percent of respondents from this cohort believe investing in their retirement fund is actually less important during this time of economic instability.

The Guardian survey was conducted by Penn, Schoen and Berland Associates.

The Guardian Life Insurance Company of America and its subsidiaries provide life insurance, disability income insurance, dental insurance products, and offer annuities, funding vehicles for qualified retirement plans, and other financial products.

((Comments on this story may be sent to newsdesk@closeupmedia.com))