In the Face of COVID-19, Primerica Survey Finds American Families Have Mixed Feelings About Personal Finances
A new study finds the majority of middle-income families are positive about their current financial situation in the face of COVID-19, but many are worried about the future. Sixty-four percent rate their personal finances positively, but 50% report that their income is falling behind the cost of living, and just 31% think they’ll be able to save for a comfortable retirement.
These are the initial findings of the Middle-Income Financial Security Monitor (“the Monitor”) from Primerica Inc. (NYSE: PRI), a leading provider of financial services to middle-income families. The Monitor is a recurring quarterly poll that gauges the financial preparedness, habits, and concerns of those with annual household incomes of $30,000-$100,000.
The full study is available for review on Primerica’s website here: http://www.primerica.com/public/Primerica_Q3_Insights_Report_2020_Fina ....
“We are encouraged by the findings in Primerica’s latest Financial Security Monitor. Middle-income families are taking steps to save for the future and protect their assets, despite facing challenging economic times,” said Glenn J. Williams, CEO of Primerica. “Overall, they remain positive about their finances, which is a testament to their resiliency. Every day throughout North America, Primerica’s representatives are proud to help hard-working families plan for their financial futures.”
Key Findings from Primerica’s Middle-Income Financial Security Monitor
How are families doing financially?
- Households worry about both their physical and financial health. Their most common worry was of their physical health (43%); however, saving for retirement (27%), the current state of their finances (23%), making housing payments (20%), and paying off credit card debt (19%) are their next most common worries.
- They aren’t as prepared for the unexpected as they need to be. 39% do not have an emergency fund that would cover an expense of $1,000 or more, and 51% would run out of money to meet basic needs within three months if they or their family’s primary breadwinner lost their job.
- Families are taking steps to save for the future and protect what they have, but they could do more. 78% have a savings account, 56% have a retirement account provided through work, and 63% have a life insurance policy to protect what they have.
Are families equipped with the financial information they need?