As 2019 comes to an end, Millennials are continuing to feel financially stressed. The 2019 COUNTRY Financial Security Index revealed that half (50%) of Millennials rate their level of financial security as fair or poor, compared to 44 percent of Americans overall.
More than 1,000 Americans were asked about their confidence levels in a variety of personal finance areas. Millennials stood out as the least confident generation, especially when it comes to feelings of being able to retire comfortably, pay off debt and have adequate insurance coverages for property, life and disability.
Millennials' confidence in their ability to pay off their debts (mortgage, car loans, credit cards, etc.) hit a low in 2019, with only 77% of Millennials feeling somewhat to very confident, versus 83% of Millennials surveyed in 2017, and 86% in 2015.
Their certainty that their possessions are adequately insured has also slowly declined over the last five years, with 77% feeling somewhat to very confident in 2019, compared to 83% in 2015.
Millennials also feel the least certain they have in five years about their families being able to live comfortably should they become disabled or die today; 54% said they somewhat or very confident in 2019, compared to 64% in 2018.
"Unfortunately, Millennials aren't purchasing enough life insurance, and are insuring their lives for much less than previous generations, leaving their family and loved ones exposed to a vulnerable situation," said Chelsie Moore, Portfolio Manager at COUNTRY Financial.
On the flip side, half of Millennials say they have been able to set aside money in the last two months for savings or investments. "When and how much you save is the most important factor when planning for retirement," says Moore. "Start saving now, even if it's not very much as it can add up quickly, especially as you invest it."
Feelings of Security Grow with Age
Baby Boomers and the Silent Generation are the most confident about their finances, with 59% rating their financial security as good or excellent. Nearly all Baby Boomers and Silent Generation (91%) are confident they can pay their debts, and eight in 10 say their families will be able to live comfortably if they were to become disabled or pass away.