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2011 NOV 18 - (VerticalNews.com) -- 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.

Released today by The Guardian Life Insurance Company of America (Guardian), the survey also revealed pervasive uncertainty about the economy, coupled with the belief that it is headed in the wrong direction, as a leading source of trepidation at every life stage about the ability to save for a comfortable retirement.

A sense of being overwhelmed about retirement planning further heightens the distress many Americans feel about financial security over the long term. While nearly all respondents (92%) surveyed say they are confident in their personal financial decision making, almost four in ten of the general population (39%), more than half (52%) of Gen Y and a third of Gen X don't even know where to begin when it comes to planning for retirement.

"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 today at Guardian's third annual issues forum, Financial Guidance for the Whole Life: Generations Y, X & Boom.

"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," Mr. Ferik continued.

Joining Mr. Ferik in the panel discussion was Carol O'Rourke, a Certified Financial Planner(R) and executive director of the Coalition for Debtor Education, a nonprofit organization housed at Fordham University Law School, and Lawrence J. White, Ph.D., distinguished 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.

Noted author, journalist and personal financial advice expert Carmen Wong Ulrich served as the forum's moderator. The former Money Magazine editor and current Glamour Magazine money expert can also be seen on NBC's Today Show, MSNBC and CNN.

Among factors the survey looked at were people's perceptions of the direction the economy is heading. From a generational standpoint, Gen X (82%) believes the economy is headed in the wrong direction and feels the least financially secure (47%) of any group. In comparison, three-fourths of the general population also shares a pessimistic view of the economy's direction, while more than one-third (37%) do not have a sense of financial security. Gen X members (59%) are also the most concerned that they will not have enough money saved for retirement, perhaps reflecting the sequence of economic forces that have impacted the continuum of their working lives - from the 1987 stock market crash to unprecedented levels of college debt to the current housing slump.

Survey respondents who own Whole Life insurance (66%) are the most confident that they will have saved enough for a comfortable retirement. This feeling of security may be due to their knowledge that the cash value of a Whole Life policy can be accessed on a tax-advantaged basis for supplementing retirement income1,2 if necessary, Mr. Ferik offered. However, among the general population, the survey found that there is a lack of understanding about how different types of life insurance work. For example, Americans in general are divided about whether the smarter approach is to buy Term Life insurance and invest the rest, or to buy Whole Life insurance and treat it as part of one's overall financial portfolio (40% each).

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%) are more likely to keep their money in a savings account rather than invest it, despite the fact that 62% of them feel that a down market is an opportunity. However, most respondents (60%) 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% of respondents from this cohort believe investing in their retirement fund is actually less important during this time of economic instability.

"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," said Mr. Ferik.

"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."

The full research study may be viewed here.

1 Guardian, its subsidiaries, agents or employees do not give tax or legal advice. You should consult your tax or legal advisor regarding your individual situation. 2 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above what is paid into the policy may cause ordinary income taxes to be paid on the gain portion of the policy. If the policy lapses, any withdrawals or loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are distributed like withdrawals. All withdrawals are distributed as gain first and subject to ordinary income taxes. If the insured is under 59 1/2 the gain portion of the withdrawal is subject to a 10% tax penalty.

This article was prepared by Economics Week editors from staff and other reports. Copyright 2011, Economics Week via VerticalNews.com.