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Overall financial situation

October 2011 Financial Security Index » Financial Security

Q:

Compared to 12 months ago, do you feel your overall financial situation is:

Just 17 percent of Americans feel their overall financial situation is better now than a year ago -- down from 27 percent in May.
One out of 10 people (11 percent) with a high school education or less feels better off now than a year ago while 35 percent feel worse.
Among low earners ($30,000 or less), 11 percent feel better off while 39 percent feel their overall finances are worse.

Kenn Beam Tacchino

"People have rebounded confidence-wise and are somewhat getting used to the volatility of the market, though I don't think anyone is comfortable with it."

The way consumers feel about their financial situation is very client-specific. Some clients have been unaffected besides watching their 401(k) balances go through the roller coaster. They still have a job and are getting raises, and everything is copacetic. Then there is another percentage of the population that has been devastated by the Great Recession. They still haven't come out of it. But generally, people have rebounded confidence-wise and are getting used to the volatility of the market, though I don't think anyone is comfortable with it. Surveys show that many people feel confident in their daily budget situation but not about their retirement situation, and they are planning on extending work if possible.

- Kenn Beam Tacchino, J.D., co-director of the New York Life Center for Retirement Income at the American College in Bryn Mawr, Pa.