Inaugural Allstate Life Tracks Poll Provides Snapshot of Financial Planning, Preparedness of Detroit-area Residents
09/18/2012 - DETROIT
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While 41 percent of Detroit-area residents polled say they've done at least "some" planning for their long-term finances, 17 percent don't have a savings account, 36 percent don't have retirement savings and 33 percent don't have life insurance, according to the inaugural Allstate Life Tracks Poll.
Additionally, 90 percent of Detroit-area respondents are confident they have the right information to make well-informed financial decisions, but sizable numbers admit they struggle to understand various financial products.
"We began the Allstate Life Tracks Poll this year to spur dialogue and call attention to the need for financial well-being and preparedness, "said Matt Smith, Michigan financial sales consultant. "Allstate financial specialists and agents provide ongoing financial education throughout the year – and especially during Life Insurance Awareness Month every September – but there's clearly more to be done."
When asked how well they understand how various products can help their future financial planning, 43 percent of respondents say they have trouble understanding annuities and 23 percent expressed the same lack of understanding about stocks and mutual funds. Additionally, twenty-six percent of responders in the Detroit area said they did not feel well about retiring and being able to maintain their current standard of living.
In this inaugural poll, Allstate phoned 1,000 adults across the nation and smaller numbers of respondents in 18 markets, including the Detroit area. The larger, national poll showed statistically significant differences in attitudes and behaviors based on a respondent's "life track," or the major life events that individuals face at varying ages.
By wide margins, single (never married) Americans are much less likely than married Americans to have basic financial products, including life insurance (42 percent versus 73 percent), retirement savings (32 percent versus 69 percent) and stocks/mutual funds (28 percent versus 50 percent). Only 35 percent of single Americans, and 39 percent of parents with children under age 18, say they are prepared financially if they or their spouses lose their jobs.
Half of parents in two-income households say it's not realistic that they'll be able to leave money for their children or grandchildren. A higher level of education also leads to greater confidence about getting out of debt – 54 percent of people with college degrees versus just 39 percent respondents with high school education say it's extremely/very realistic that they will become debt-free. Wealthier people and college graduates expressed greater confidence in their financial futures and owned more products.
To view the national Allstate Life Tracks Poll results, visit www.allstatenewsroom.com.
Act Now to Improve Your Financial Health
As the Allstate Life Tracks Poll points out the need to take greater action to prepare for our financial futures, Smith recommended three immediate actions to help improve your financial health:
- Do your homework: You can find a wealth of valuable, free information about managing your finances: personal finance websites, books, newspapers and seminars. Financial professionals can guide you through this information and help you set financial goals. For information about specific products, such as life insurance, you also can ask for a referral from professionals you currently deal with and trust – such as your auto/home insurance agent.
- Set goals and a timetable to achieve them. But – rather than trying to make progress on all your goals at once – prioritize those goals every year and focus on the two or three that are most important to you.
- Make a date once a year for an annual life insurance checkup to double check that the amount and type of coverage is right for your current situation.
Note to Editors on Survey Methodology
Survey was conducted among American adults age 18+ who have thought about or planned for their future financial needs. Respondents were reached via landline and cell phone. The [city] area poll surveyed 100 adults August 8-17. The survey has a margin of error of +/-9.81%. The national poll of 1,000 American adults was conducted August 4-8, 2012 via landline and cell phone. The survey has a margin of error of +/-3.1% in 95 out of 100 cases. The survey was conducted by FTI Consulting, Inc.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com and 1-800 Allstate®, and are widely known through the slogan "You're In Good Hands With Allstate®. As part of Allstate's commitment to strengthen local communities, The Allstate Foundation, Allstate employees, agency owners and the corporation provided $28 million in 2011 to thousands of nonprofit organizations and important causes across the United States.
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