In a national survey taken just days after the 2016 U.S. presidential elections, a gap exists between millennials and older generations with regard to how each group views their overall personal financial security, as well as the state of the U.S. economy in the coming year.
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The Country Financial Security Index score year-over-year remained largely flat from December 2015, rising by just 0.2 points from 66.6 to 66.8. However, the score among millennials was the lowest among all the age groups polled, at just 60.9, compared to 66.6 for Gen X respondents (ages 35-49) and 69.2 for baby boomers (ages 50-64). The Silent Generation (ages 65+) registered the highest Index score at 71.2. Excluding millennials, all other age groups were significantly more optimistic about their finances with their average index score registering an uptick from 68 a year ago to 68.7 at the close of the year.
The index examines Americans’ current sentiments of their overall level of personal financial security on a scale of 0 to 100 with 100 indicating the highest level of security and compares that to previous years. It also measures Americans’ confidence level in a variety of individual personal finance topics such as their ability to pay back debts, set aside money for savings or investments, and retire comfortably, among others.
“As we transition from the recent election results and head into a new year, we are seeing a mix in confidence among people of all ages as they try to better understand the overall economic outlook and their own personal financial future,” said Troy Frerichs, director of wealth management at Country Financial. “That is why it’s important to create specific plans tailored to your life stage to help ease any anxiety, for millennials and all other generations, and secure one’s financial objectives early and achievably.”