Kitchen Table Finances: New Survey Reveals Increased Personal Financial Responsibility among Americans with Goals to Save More and Reduce Debt

A Few Recognize What Could Be a Game-Changer For Them: Advice

NEW YORK--(BUSINESS WIRE)--Fifty-seven percent of Americans are reporting that they plan to reduce their debt in 2012, and 50% plan to save more, according to the New York Life Kitchen Table Pulse, a new survey of over 1,000 adults aged 30 and older sponsored by New York Life.

“We know these kitchen table conversations can assist families with being better prepared and perhaps feel more positive about their financial futures. We hope that many more Americans seek financial guidance in 2012 and take some of their worry off the table.”

Even with these important steps toward more personal financial responsibility, the survey revealed Americans’ continued concerns around their financial future. In the year ahead, only 30% agree that their family will be more financially secure and better prepared for the unexpected, and just 24% believe that they will be in better financial shape for retirement.

“The continued economic unsteadiness has hit American families hard, and the survey results echo the concern that our 12,250 agents hear across kitchen tables around the country. Clients are expressing a stronger desire to take personal financial responsibility by saving more and reducing debt. But, with the realization that they cannot rely on traditional financial safety nets any longer, they’re asking: ‘How do we protect ourselves, take care of our children now and in the future and even prepare for our own retirement needs?’” said Mark Pfaff, executive vice president, New York Life. “We know these kitchen table conversations can assist families with being better prepared and perhaps feel more positive about their financial futures. We hope that many more Americans seek financial guidance in 2012 and take some of their worry off the table.”

Some interesting findings from the survey include:

• Those most likely to say that they will reduce their debt in 2012 include those aged 45-59 (65%), men (61%), married adults (61%), and full-time workers (60%).
• Adults ages 30-59 are more likely to intend to save more next year than are those who are older (55% vs. 37%).

What Can Make the Difference in 2012

“In 2012, saving more and spending less is the order of the day, but this is not giving Americans a better feeling about their financial situations and certainly not preparing them for the unexpected. Those who are doing the right thing for their families and their finances want to have some peace of mind. Studies have shown that people who engage with a professional financial representative feel better about their financial strategies and future. That’s why our agents reach out to families and businesses in their communities and offer professional assistance that results in peace of mind,” said Mr. Pfaff.

According to the survey, only 14% of Americans report they plan to seek professional help managing their finances in 2012.

“Looking more closely at responses to this question, it is encouraging to see that those most likely to say that they will seek the help of a financial professional include parents, college graduates and those ages 30-44. But it is important for more Americans to think about engaging a professional. While many believe they can go this alone, or hide their heads in the sand, the continued economic uncertainties that persist today would be better managed with professional assistance,” added Mr. Pfaff.

Survey Methodology

These are some of the findings of an Ipsos poll conducted November 10-14, 2011. For the survey, a national sample of 1,011 adults aged 30 and older from Ipsos’ U.S. online panel were interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the U.S. adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of 1,011 and a 100% response rate would have an estimated margin of error of +/- 3.1 percentage points 19 times out of 20 of what the results would have been had the entire adult population of adults aged 30 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

About New York Life

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).** Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments*** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life's Web site at www.newyorklife.com for more information.

*Based on revenue as reported by “Fortune 500, Ranked within Industries, Insurance: Life, Health (Mutual),” Fortune Magazine, May 5, 2011. See www.money.cnn.com/magazines/fortune for methodology.

**Source: Individual Third Party Ratings Report as of 8/23/11.

***New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.