Americans Want More Financial Knowledge

One silver lining to the recession could be that Americans take more interest in their finances, a new survey suggests.

The survey from market research firm Mintel Comperemedia found that three-fourths of respondents are trying to increase their financial know-how because of the current economic crisis. A third have already done so, and 43% plan to do so in the future.

Financial advisers are one place where adults might turn for help, although the majority still don’t plan to. While most (65%) of those surveyed said they feel unsure about investing because of the economic crisis, 38% said they’ve started meeting with a financial adviser or plan to soon. Slightly less than a third admit they’d like advice from a professional about how to invest their money, according to Mintel.

Young adults are especially determined to increase financial literacy, according to the survey. Five out of six of those age 15 to 32 reported that they’ve already become or plan to be more savvy with finances. Furthermore, four in 10 would like investment advice from a financial professional.

“Financial services companies have a tremendous opportunity to provide information, guidance, and support to these eager consumers,” said Susan Menke, vice president at Mintel Comperemedia. “Financial literacy initiatives could help rebuild trust in financial brands, establish loyal customer relationships, and help foster a more responsible, informed public.”

The survey was conducted in June among 2,091 respondents age 18 and older with access to the Internet.

Getting Financial Advice Drops in Importance

This year, fewer Americans ranked getting trusted financial advice of prime importance, according to a survey by Prudential Financial.

The number of respondents indicating that getting trusted financial advice was of prime importance was down from 40% in 2008 to 29% this year, according the survey. Prudential said the lower numbers could be because Americans are more cautious about getting advice, or they just can’t afford investment advice.

The survey also found that immediate financial needs are taking precedence over retirement savings. Sixty-three percent of respondents in a recent Prudential Financial survey rated retirement savings as highly important, down from 76% two years ago. Meanwhile, 72% of respondents said having a retirement nest egg large enough to meet their retirement needs was highly important.

The number of people who said they did not know when they would retire headed up in the 2009 poll to 14%, an increase from 9% in 2008. The mean expected retirement age was 64.1 this year, a slight hike from 63.5 last year.

Not surprisingly, Prudential said those who say they were most affected by the economic downturn were the most unsure about when they would stop working.  

The three surveys used in the Prudential report were taken in April and May of 2009 and included 2,500 workplace benefits officials, benefits brokers, and employees. The surveys were conducted for Prudential by the Center for Strategy Research.

The study report is available here

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