Published: March 15, 2010
Research Says...Americans Are Ready to Rebuild Their Financial Security
DES MOINES, Iowa - (BUSINESS WIRE) - Calling all Americans: Get an advisor. Get
a plan. Get rebuilding. That's the message
from the Principal Financial Group
in its launch today of the new multi-faceted America Rebuilds
campaign including an online planning center at www.AmericaRebuilds.com.
"The country has been through tough economic times, but the
resilient spirit of Americans is evident everywhere, including in their
desire to rebuild their financial futures," said Mary O'Keefe, senior
vice president and chief marketing officer, The Principal.
"There has never been a better time for people to rebuild. We
can help by connecting those who need assistance with those who can
provide it."
The numbers tell the story
While people are ready to rebuild, they are at different phases in
the reconstruction process - some are emerging from the rubble, and some
are farther along. According to the latest Principal
Financial Well-Being IndexSM (1st
Quarter 2010) - a survey of working and retired Americans conducted for
The Principal by Harris Interactive - the vast majority of American
workers (84 percent) and retirees (71 percent) are beginning to take
some action to rebuild their financial well-being. Since
the recession began in 2008, Americans said they have started to rebuild
by spending less money (62 percent of workers; 54 percent of retirees);
paying down debt (45 percent of workers, 29 percent of retirees); and
increasing savings in an emergency fund (22 percent of workers; 14
percent of retirees). They also sought online tools or help
from a financial advisor to better manage their finances.
But the shift toward taking more personal financial responsibility
did not start with the recession, it just accelerated it, O'Keefe said.
Even before the crisis, people were behind in their retirement
planning1, they were spending too
much, and they were in debt. Americans learned painful
financial lessons as a result of the downturn, including the need to
have an emergency fund2, save more,
pay off debt and protect their assets. As a result,
financial behavior is beginning to shift, spurring Americans to rethink
their spending and savings habits. Today more Americans say
they're ready to get back on track with their savings and start the new
decade on the right financial footing3.
Help...I need somebody
The role of the financial advisor is more critical today than
ever, O'Keefe said. Two major events have collided to
create an enormous need for guidance: 78 million Baby
Boomers are approaching and entering retirement4
just as the worst economic crisis since the Great Depression wreaked
havoc on financial security. Yet despite renewed interest
in their financial well-being, most Americans still do not quite know
how to get there. Most do not have a plan5.
And they don't want to go it alone. More Americans
want professional financial help through a financial advisor today than
just a year ago6.
The 'New Normal?'
It remains to be seen if the shift in consumers' financial
behavior will be permanent, but resources like America Rebuilds provide
a place to start. "The battle cry of America Rebuilds is to
build on the paradigm shift by giving Americans timely and effective
information to help them make planning, saving and investing part of
their DNA," O'Keefe said.
Rebuild toolbox -- Online planning center
At the heart of the America Rebuilds campaign is the online hub, www.AmericaRebuilds.com,
designed to engage, educate, inspire and motivate Americans to take
action. The site features:
-
Educational tools, videos and guidance from third-party
financial experts and advisors
-
Assistance finding an advisor
-
Financial tips and information
Time Warner partnership
O'Keefe said The Principal will drive traffic to
AmericaRebuilds.com through a visible promotional partnership with Time
Warner divisions, Time Inc. and Turner broadcasting, including Web
content featuring financial expert Jean Chatzky. The
campaign includes a category exclusive sponsorship of CNN's "Building Up
America" series across CNN, HLN and Airport Networks. Chatzky
conducted interviews with a number of consumers and business owners in
various stages of rebuilding that will be featured as real life video
stories on AmericaRebuilds.com. According to Chatzky, "It's
clear that Americans - by and large - are trying to make the right
financial moves. They're reprioritizing, saving more, and
spending less. But it's also clear that they could use some
help."
In addition to the Time Warner partnership, The Principal's
rebuild advertisements will run throughout national print, broadcast,
cable, financial trade and local business journals, as well as NCAA
basketball and football event sponsorships.
Got mobile?
If that's not enough, The Principal has created a convenient
mobile website for advisors and people on the go. The mobile
site allows users to evaluate their retirement goals
through a planning calculator; receive useful and entertaining
information about budgeting, saving and other goals; access savings
tips; find an advisor; and schedule calendar reminders to contact their
advisor. For more information, visit: https://m.principal.com/plan.
About the Principal Financial Group
The Principal Financial Group (The Principal)7
is a leader in offering businesses, individuals and institutional
clients a wide range of financial products and services, including
retirement and investment services, life and health insurance, and
banking through its diverse family of financial services companies. A
member of the Fortune 500, the Principal Financial Group has $284.7
billion in assets under management8 and serves some 18.9
million customers worldwide from offices in Asia, Australia, Europe,
Latin America and the United States. Principal Financial Group, Inc. is
traded on the New York Stock Exchange under the ticker symbol PFG. For
more information, visit www.principal.com.
1 "Retirement Confidence Survey." Employee
Benefit Research Institute. (2010): 43% of workers said in 2009 they
have less than $10,000 in savings and investments.
2 Principal Financial Well-Being Index (4th
Quarter 2009): 28% of workers and 22% of retirees said the top lesson
learned in the past decade was having an emergency fund in the event of
illness, disaster or job loss.
3 Principal Financial Well-Being Index (4th
Quarter 2009): 2/3 of workers and 58% of retirees said they have reduced
their overall spending in the past two months as a result of the current
economy. 59% of workers, 53% retirees are tracking their
finances more closely as a result of the downturn. Workers (74%) and
retirees (77%) said they will spend less after the downturn ends.
Workers have increased the amount they are saving for retirement in the
past six months (18% at year end 2009 vs. 11% at year end 2008).
4 U.S. Bureau of the Census
5 Principal Financial Well-Being Index (3rd
Quarter 2009): 83% of workers with retirement savings do not have a plan
for how they'll transition savings into retirement income
6 "What a Difference a Year Makes: A
Supplemental Report on the Impact of the 2008-2009 Financial Crisis."
LIMRA International. (2009): In 2009, 61% of retirees had personal
financial advisors compared to 56% in 2008.
7 "The Principal Financial Group" and "The Principal" are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.
8 As of December 31, 2009
Principal Financial Group
Susan Houser, 515-248-2268
houser.susan@principal.com
or
Sonja
Sorrel, 515-362-2431
Sorrel.Sonja@principal.com
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