Americans Still Hopeful They Will Achieve the “American Dream,” MetLife Study Shows, Despite Negative View of Economy |
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Written by U.S. Insurance News
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Friday, 08 February 2008 |
Americans are very confident that they can achieve the American dream. They’re just not sure they’re neighbors can.
Americans are very confident that they can achieve the American dream.
They’re just not sure they’re neighbors can.
MetLife’s second “Study of the American Dream,” just released, shows a dichotomy of thought among U.S. citizens about the economy. For example, 86 percent of people now think the U.S. economy is headed in the wrong direction, a dramatic increase from the 64 percent of those who said the same thing a year ago. And 93 percent believe that Americans have to work as hard as or harder than ever just to get by, an increase from 87 percent a year ago.
But at the same time, Americans still cling to the idea of achieving financial security—the chief definition of the American dream. The MetLife study reveals that 85 percent of those polled expect their own financial situation to be about the same or even better this year, compared with last year.
Overall, 37 percent of Americans believe they have already achieved the American dream. In the past year, the number of baby boomers who say that they have achieved the dream rose 8 percentage points, up to 40 percent. Among Americans who have yet to achieve it, 74 percent believe that it’s possible to do so in their lifetime, an increase from 67 percent last year.
The rosy outlook for their personal situation hasn’t kept Americans from worrying about the country’s, as a whole, economic outlook, the MetLife study shows. Almost half (49 percent) of Americans expect the economy to be worse this year than it was in 2007. Americans cited the following as reasons why the economy isn’t doing well:
- energy costs, 58 percent
- health care costs, 36 percent
- the national budget deficit, 31 percent
- high personal debt levels, 30 percent
- the outlook for Social Security, 25 percent
“As traditional safety nets continue to erode and the cost of daily living expenses rise, Americans are feeling a collective loss of optimism and control,” observed C. Robert Henrikson, chairman of the board, president, and CEO of MetLife, Inc. “On a personal level, however, Americans are gearing up to take their finances into their own hands and believe that they will achieve the American dream in their lifetime.”
Finally, the MetLife study points out three areas in which Americans are taking action to affect their financial futures.
First, 77 percent say they are planning to build their own personal safety nets to protect their family. Members of both the baby boomer and GenY age groups are most interested in having health insurance that continues through retirement, followed by a retirement savings plan.
Second, 95 percent believe employee-funded benefits are important. Younger employees especially are also looking for benefits education and advice. More than one in four (26 percent) would like more education from their employers about the products they should purchase to create a personal financial safety net, and one in five would like financial planning in the workplace to help them make good decisions.
Third, 75 percent believe that the 2008 presidential election will be more important than past elections, and 71 percent believe the election’s outcome may affect their ability to achieve their financial dreams. As a result, the presidential election in November could draw a record number of voters.
“Across generations, Americans are eager to take action and make life better for themselves and their families,” said Beth Hirschhorn, senior vice president and chief marketing officer for MetLife. “Their strong sense of optimism and self-reliance are giving them the confidence they’ll need to shoulder the burdens that are shifting to them. But, realistically, to keep the American dream within reach, they’ll need help from employers, financial advisors, and public policymakers.”
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