Many pessimistic about financial future, study shows

WASHINGTON — As Americans feel more stressed out over the erosion of corporate benefits and the solvency of social benefits programs, such traditional economic indicators as gross domestic product growth and household income are becoming less correlated to their perception of the economy’s well-being, according to a recently released study. The “MetLife Study of the American Dreams,” which was based on interviews with more than 1,500 people in November, found that a majority of respondents said that there was more at risk with respect to their financial future than in the past. That was particularly true for the respondents who were baby boomers and Generation Xers. Seventy-two percent of those surveyed expressed concern that Social Security won’t be around in the future. Meanwhile, 53% expressed the same concern for Medicare. New York-based MetLife Inc.’s study also found that 60% of respondents said they carried more financial burdens than did their parents, and most thought that the burden would continue to grow with future generations. Only members of the so-called silent generation — those born during the Great Depression and World War II — felt they had it good compared with their parents. Sixty-one percent of those surveyed felt that the decline in company benefits was negatively affecting their ability to achieve financial security, according to the study. Although most of those surveyed said that they thought they could achieve financial security if they worked hard, only half said that they thought their hard work actually pays off, the study found. The study called for a range of actions, including encouraging individuals to work with financial advisers “who understand the burden shift,” as well as for employers to provide bridges to more effective self-sufficiency for their employees. — Sara Hansard