Findings from The 2009 MetLife Study of the American Dream

Transcription

1 Findings from The 2009 MetLife Study of the American Dream UFS The American Dream Revised Not Reversed: Against the Backdrop of the Financial Burden Shift

2 Agenda Introduction American dream revised, not reversed 3 Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together Americans are flying without a safety net Minority populations a slightly different view Conclusions 2

3 1 Introduction American dream revised, not reversed Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together Americans are flying without a safety net Minority populations a slightly different view Conclusions 3

4 American Dream Study Objective Build upon two previous studies to gain a deeper understanding of consumer attitudes and perceptions of the American dream and their behavioral changes as a result of the financial burden shift and current economic crisis. Understand how the views of select minority groups are similar or different from the rest of the U.S. population. 4

5 Survey Methodology 2,243 interviews conducted Representative of the U.S. population Data analysis across four generational cohorts 5

6 Survey Methodology Over-sampling done for African Americans, Hispanic Americans, Asian Americans and the Middle Market 6

7 Introduction 2 American dream revised, not reversed Pragmatism replacing consumerism Work is the linchpin holding the dream together Americans are flying without a safety net Conclusions 7

8 American Dream Still Driven by Financial Security Financial Security Home Family 8

9 On Achievement of the American Dream 34% say they ve achieved it 72% say it s within their grasp 9

10 Sustaining the American Dream: Half Worried About Backsliding IF HAVE ACHIEVED: Are you worried about not being able to sustain the American Dream? 10

11 Affluents More Likely to Have Achieved the Dream, Yet Still Concerned Do you think that you have achieved the American dream? % Say Yes IF ACHIEVED: Are you worried about not being able to sustain the American dream? % Say Yes 11

12 Significant Shift in the Definition of the Dream Family, children and marriage taking on a larger role in the definition What does the American Dream mean to you today? 12

13 Significant Shift in the Definition of the Dream What does the American Dream mean to you today? 13

14 Introduction American dream revised, not reversed 3 Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together Americans are flying without a safety net Minority populations a slightly different view Conclusions 14

15 For Many, the Bar Is No Longer Rising 47% feel they have what they need in terms of life s necessities Which of the following is closer to your view? 15

16 Crisis Causing a Reevaluation of Priorities 44% of all respondents say they re placing greater emphasis on personal life and family. Which is closer to your view? 16

17 The Public is Making Adjustments Doing more of... Staying home -- eating in and watching movies at home Thinking about life goals Shopping more economically Spending time with friends and family 17

18 The Public is Making Adjustments Doing less of... Eating at nice restaurants Going on vacations Spending time in community Giving to charity 18

19 Less Pressure to Keep Up With The Joneses 20 point decline in the number of Americans feeling pressure of consumerism How much do you agree or disagree with the following statement: The pressure I feel to buy more and better material possessions is greater than ever? 19

20 Recalibrating Necessities vs. Luxuries Technology becomes increasingly ubiquitous, as internet access and cell phones become more necessary perhaps echoing the importance of family and friends and the need to stay connected. Please categorize these things as a necessity or luxury for you personally. Showing % saying necessity. 20

21 Recalibrating Necessities vs. Luxuries Vacations and eating out being put on hold All Silents Boomers GenX GenY

22 Buyers Remorse Setting In Younger generations experiencing buyers remorse Which is closer to your view? 22

23 Introduction American dream revised, not reversed Pragmatism replacing consumerism the bar stops rising 4 Work is the linchpin holding the dream together Americans are flying without a safety net Minority populations a slightly different view Conclusions 23

24 Concerns About Job Loss are Pervasive 56% concerned about job loss this year IF EMPLOYED: Are you or are you not concerned about losing your job in the next year as a result of the current economic situation? 24

25 Unemployment Touching Half of Americans Have you or have any friend(s) or family members lost their job as a result of the current economic situation in this country? 25

26 Two Paychecks Away From Financial Ruin 50% of Americans say they could not meet their financial obligations for more than one month, in the event of job loss IF EMPLOYED: If you were to lose your job, for how long could you afford to be out of work and still meet your financial obligations including monthly expenses? 26

27 Bankruptcy a Significant Concern 59% concerned with having to file for bankruptcy in the event of job loss IF EMPLOYED: If you were to lose your job, would you or would you not be concerned about having to file for bankruptcy? 27

28 Home Loss a Significant Concern 64% concerned about home foreclosure in the event of job loss IF EMPLOYED AND OWN HOME: if you were to lose your job would you or would you not be concerned about losing your house? 28

29 Affluents Not Immune to the Economic Crisis IF EMPLOYED: Are you or are you not concerned about losing your job in the next year as a result of the current economic situation? 29

30 Introduction American dream revised, not reversed Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together 5 Americans are flying without a safety net Minority populations a slightly different view Conclusions 30

31 Personal Safety Net Defined 78% see a personal safety net as including financial and protection products not just cash alone Which of the following is closer to your view? 31

32 Most Lack Adequate Safety Net 74% feel they do not have an adequate safety net Do you feel that you currently have an adequate safety net? 32

33 Personal Safety Net Components Today, which of the following currently make(s) up your personal safety net? Which of the following would you most want in your safety net that you don t currently have? 33

34 Introduction American dream revised, not reversed Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together Americans are flying without a safety net 6 Minority populations a slightly different view Conclusions 34

35 More Optimistic on Achievement of the Dream Fewer believe they ve achieved it But more think it s possible 35

36 Minorities More Optimistic About the Economy 43% of African Americans believe the economy will be better this year than last Do you expect the U.S. economy to be better, worse or about the same in 2009 than it was in 2008? 36

37 Intent to Create Financial Safety Nets is High Across races, more than three-quarters of Americans plan on creating their own personal safety nets in response to uncertainty about corporate safety nets African Americans and Asians are taking the most action towards creating their own personal safety nets Which of the following is closer to your view? In light of uncertainty about traditional corporate and social safety nets, I m taking action to create my own personal safety net to protect my and my family s financial future. All Caucasian African American Hispanic I will rely on the government and my employer to provide my financial safety net and hope that it s enough. Asian 37

38 Importance of the Career Compared to the general population, minorities place significantly more importance on having a successful career in their definition of the American dream This is especially true among the Asian Americans What does the American dream mean to you today? Please select your top 3 choices. All Caucasian African American Hispanic Asian Financial security Family/children Free from want, my basic needs are met Comfortable retirement Home ownership Successful career Marriage Freedom Happiness / Contentment / Peace of mind Opportunity / Opportunity to pursue what you want / The opportunity to succeed Nothing / It is a myth Others All of the above Don't Know / No Response

39 Importance of Job Security Similarly, Hispanics and Asians view job security as an integral component of financial security How do you define financial security? Please select your top 3 choices. All Caucasian African American Hispanic Having enough money that I don't need to worry Having enough money for a comfortable retirement Having enough money to pay bills Having no debt (aside from mortgage) Having job security Having health insurance Having enough money to raise a child Having enough money to buy a home Having enough money for children's education Having enough life insurance in case something were to happen to me Having enough money to take care of elderly family members Having enough money to buy a car Others Asian 39

40 Introduction American dream revised, not reversed Pragmatism replacing consumerism the bar stops rising Work is the linchpin holding the dream together Americans are flying without a safety net Minority populations a slightly different view 7 Conclusions 40

41 Distrust of the U.S. Financial System 52% say they no longer trust financial institutions, banks, financial markets, and the regulatory system in the U.S. How much do you trust the US financial system? (financial institutions, banks, financial market, and the regulatory system in the U.S.) 41

42 Americans Expect A Long Haul 69% think improvement in the economic situation will take from 1 to 5 years When, if ever, do you expect the country s economic situation to improve? 42

43 Importance of Financial Health of Companies 91% more concerned about financial health of companies they do business with Please indicate how strongly you agree or disagree with the following statement: It s more important than ever to understand the financial health of the companies I do business with or am considering doing business with. 43

44 Guarantees Becoming More Important, Yet Skepticism Exists 51% are interested in guarantees when evaluating purchase decisions, yet many think no company can truly deliver Which is closer to your view? 44

45 Guarantees & Stability Outweigh Returns 80% more concerned with guarantees and stability than returns when selecting financial products Which is closer to your view? 45

46 Increased Emphasis on Trust 68% willing to pay more for financial/protection products from a company they trust Please indicate how strongly you agree or disagree with the following statement; I am willing to pay a bit more for financial and protection products if they are from a company that I trust. 46

47 The Silver Lining... A Stronger, Healthier Dream? UFS

48 Personal Financial Outlook Solid 74% expect their situation to be the same or better in 2009 as it was in 2008 Do you expect your personal financial situation to be better, worse or about the same in 2009 than it was in 2008? All Silent Baby Boomers Generation X Generation Y 48

49 Major Shifts Underway in Financial Behavior What steps have you taken or will you take towards securing your financial future as a result of the current economic situation in this country? 49

50 Major Shifts Underway in Financial Behavior What steps have you taken or will you take towards securing your financial future as a result of the current economic situation in this country? 50

51 Major Shift Underway in Financial Behavioral - Minorities The majority of minorities report saving more and spending less as a result of the current economic situation Minorities are significantly more likely than Caucasians to review retirement savings plans and pay more attention to employers benefit offerings in the future Half of African Americans plan to re-evaluate their life insurance needs What steps, have you taken or will you take towards securing your financial future as a result of the current economic situation in this country? Taken step All Plan to take this step Caucasian Taken step Plan to take this step African American Hispanic Reviewing my retirement savings plan Paying more attention to my employers' benefits offerings Re-evaluating my life insurance needs Rebalancing my investment portfolio Meeting with my financial advisor Taken step Plan to take this step Taken step Plan to take this step Saving more and spending less Becoming more educated on financial topics Taken step Asian Plan to take this step

52 Conclusions & Implications The American dream is still alive, but on pause Focused on near-term survival rather than material accumulation or long-term accomplishments Focusing more on family, marriage, and stability Less interest in keeping up with the Joneses Americans heeding to financial wake up call Moving from intent to action Appetite for education Younger generations engaged and flexible 52

53 Conclusions & Implications Personal safety nets desired by many, possessed by few Newfound appreciation for the employer safety net Heightened need to collaborate, even while cash is the immediate need for some Guarantees more important than ever, and so is trust Staying in touch with employers and their employees can help ease concerns Financial strength can overcome consumer skepticism 53

54 metlife.com/americandream