Data & Research April 1, 2008

New Savers Behavior Index Finds Optimism Among Affluent Investors

Affluent active savers are much more optimistic about their ability to reach their financial goals and their control level towards their finances than they are about the state of the U.S. economy.
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That was what the first “Savers Behavior Index’ (SBI), launched by HSBC Direct, determined. The SBI benchmarks key viewpoints, personal finance behaviors, and perspectives among America’s affluent active savers.

For the initial index, affluent active savers were asked to evaluate their sentiment on a number of personal financial issues on a scale from 1 to 100. The results were:

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  • Optimism towards U.S. economy: 52
  • Optimism regarding reaching financial goals: 71
  • Control level towards finances: 72
  • Stress level due to financial situation: 41

The SBI found cash savings remains a significant part of this segment’s portfolio, as two in five (40%) currently have 10-25% of their total savings in cash. In addition, despite market volatility, more than half of respondents (53%) had not changed their portfolio allocation within the past three months.

More than one in three (35%) respondents indicated they are saving to alleviate fear of not having enough money to cover their expenses, and more than one in four (28%) are saving to pay for education costs. In addition, affluent active savers believe living costs (26%) and the performance of the stock market (25%) have the greatest impact on their personal finances.

Three out of four affluent active savers (75%) are saving money with the goal of being prepared for retirement, and more than one in four (26%) currently have over half of their total savings in retirement savings.

HSBC will conduct the SBI survey on a quarterly basis to stay abreast of important shifts and trends within this group. The SBI sample is defined as those who are affluent, save with frequency, and save at least 5% of their pre-tax income. The SBI examines the views of affluent active savers on their personal financial stability, cash savings, reasons to save, and retirement preparation.

More information is at www.hsbcdirect.com.

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