2012 HOUSEHOLD FINANCIAL PLANNING SURVEY potx

          2012HOUSEHOLDFINANCIAL PLANNINGSURVEY  ASummaryofKeyFindings July23,2012  Preparedfor: CertifiedFinancialPlannerBoardofStandards,Inc.andtheConsumerFederationofAmerica Preparedby: PrincetonSurveyResearchAssociatesInternational  2  Contents EXECUTIVESUMMARY 3 KeyFindings 3 AMuchTougherEconomicLandscapeforAmericanFamilies 3 MostPeopleFindManagingFinancesDaunting 4 FewerHavingSavingsforEmergenciesandChild’sCollege 5 MajorityHaveaPlanforSpendingGoal ,butFewhaveaFinancial Plan 5 PlannersMoreConfidentAboutHandlingtheirFinances,FeelBetterabouttheirProgress 6 PlanningBenefitsAllIncomeLevels,notjusttheWealthy  7 AbouttheSurvey 7 SECTION1:CURRENTECONOMICLANDSCAPE 8 SECTION2:SAVINGANDPLANNINGTOMEETFINANCIALGOALS 9 Saving andPlanningforEmergencies 13 SavingandPlanningforRetirement 14 Pre‐retirement 14 DuringRetirement 16 SavingtoSendaChildtoCollege 16 SavingandPlanningforOtherFinancialGoals 16 SECTION3:CREDITCARDDEBT 18 SECTION4:THEIMPORTANCEOF FINANCIALPLANNING 20 EmergencyandRetirementPlanning 20 ComprehensiveFinancialPlanning 22 APPENDIX 26 SAVERSANALYSIS 26 METHODOLOGY 30 DesignandDataCollectionProcedures 30 WeightingandAnalysis 32 TOPLINE 38   3 EXECUTIVESUMMARY KeyFindings  StillfeelingtheeffectsoftheGreatRecession,manyAmericanfamiliestodaystrugglejusttomakeends meet.TheCFPBoard/ConsumerFederationofAmericaHouseholdFinancialPlanningsurveyfinds peopletodayfacingtoughe rchoicesabouthowtoallocatemorelimitedfinancialresources.Saving enoughmoneyforfuturegoalslikeretirement andkids’college–whilealsomaintainingana dequate emergencyfundandstayingoutofseriousdebt–hasalwaysbeenachallenge.Thiswastrueevenin themorefavorableeconomicclimateof1997,whenPrincetonSurveyResearchAssociatesInternational firstsurveyedhouseholddecision‐makersaboutthesetopics.In2012, withhighunemployment, stagnantincomesandreducednetworth,thosechallengesareevengreater. Whiletheeconomicclimatehaschanged,financialplanningremainsacriticalfactorinseparatingthose whoareontracktomeettheirfinancialgoals fromthosewhoarefallingbehind.Thenewsurveyfinds peoplewho planfeelmoreconfidentabouttheirfinancialdecision‐making,man agetosavemore money,andfeelbetterabouttheirprogresstodateinsavingforfinancialgoals.Plannersscorehigher infinancialpreparednessthannon‐plannersacrossincomegroups.Thebenefitsarenotlimitedtothose whoarebetteroff. Too fewAmericanfamiliesaretakingadvantageofthisvaluabletooltohelpprotecttheirfamiliesfrom thevagariesofanuncertaineconomicenvironment. ThepercentageofAmericanfamilieswhohave madeacomprehensivefinancialplan–eitherontheirownorwithprofessionalhelp–hasnotchanged significantlyfrom 15yearsago.Overall,onlyaboutathird(31%)ofdecision‐makerstodayreporthaving everputtogethersuchaplan.Andjust35percentofdecision‐makersreporthavingaplaninplaceto saveforemergencies,downfrom39percentin1997. AMuchTougherEconomicLandscapeforAmerican Families RecentreportsfromtheFederalReserveshowthedevastatingeffectsoffinancialcrisisonthemiddle class.Themedianfamily,richerthanhalfofallAmericanfamiliesandpoorerthantheotherhalf,hada networthof$77,300in2010comparedwith$126,400in2007accordingtothe Fed.Thismeansthe averagefamilyhasnomorewealthtodaythanitdidintheearly1990s,wipingoutnearlytwodecades ofeconomicgains. 1 Ournewsurveydocumentstheeconomicpainpeopl earefeeling.In2012, householdswherepeoplelivefrompaychecktopaycheckoutnumberthosewherepeoplefeel  1 “FamilyNetWorthDropstoLevelofEarly90’s,FedSays,”byBinyaminApplebaum,TheNewYorkTimes,June11, 2012.  4 financiallycomfortable(38%vs.30%).Fifteenyearsago,wheneconomicconditionsweremuchmore positive,thesenumberswerereversed–fewerpeopledescribedthemselvesasfinanciallystruggling thansaidtheywerelivingthegoodlife(31%vs.38%).FormostAmericans,theirhomehasbeentheir biggestfinancialasset,butthe crashofhousingpriceshasbeenthesinglebiggestfactorthat has reducedpeople’swealth.Today,one‐quarter(23%)ofthosewithamortgagesayitisunderwater,i.e., themoneyrequiredtopayitoffisgreaterthanwhatthepropertycouldsell forontheopenmarket. Looking ahead,20percentofnon‐retiredhomeownersthinktheywillstillbemakingmortgage paymentswhentheyretire,upfrom14percentin1997. Speakingofretirement,people’sexpectationsforhowearlytheywillbeabletoretirehavebeenscaled backconsiderably.Fiftee nyearsago,half(50%)ofnon ‐retireestoldusthattheyexpectedtoretire beforetheyturned65.Now,onlyathird(34%)believestheywillbeabletoretirethisearly.Morethan aquarter(27%)thinktheywillnotbeabletoretirebeforeage70,ifever.Thiscompareswith15 percentin 1997.Infact,13percentofthosenotyetretiredtodayvolunteer thattheywon’teverbe abletostopworking,comparedwith4percentwhowerethispessimisticabouttheirretirement prospects15yearsago. MostPeopleFindManagingFinancesDaunting Astheeconomicenvironmenthaschangedfortheworse, people’scomfortlevelwithfinancialmatters hasnotimproved.Advancesintechnologyhavemadeaccessingandanalyzing financialinformation mucheasier,butlackofunderstandingaboutsavingsandinvestmentsoptionsandhowtobestmanage householdfinancesremainsaseriousobstacletoAmericans’financialpreparedness.  55%say“it’shard formetoknowwhototrustforfinancialadvice.”  52%say“tomeinvestingseemscomplicated.”  55%say“I’mworriedaboutlosingmymoneyifIinvestit,”asignificantincreasefrom1997 (45%)reflectinggrowinguncertaintyinresponsetothestockmarketturbulenceofrecentyears. In additiontothesebarrierstosoundmoneymanagement,halfofhouseholddecision‐makersbelieve they“justdon’tearnenoughmoneytosaveregularly.”Majoritiesofthoseintheunder $25,000(61%) and$25,000‐$49,999(64%)incomebracketsfeeldiscouragedfromsavingforthisreason.Eveninthe $50,000‐$99,999category, half(50%)feeltheirincomelevelisabarriertosavingregularly.Andone‐ quarter(26%)inthe$100,000ormorecategoryareinclinedtobelievethattheirincomeisinsufficient toallowthemtosaveonaregularbasis.  5 FewerHavingSavingsforEmergenciesandChild’sCollege Feelingmorefinancialpres suretodaythanin1997,Americanfamiliestodayarelesslikelytobesaving fortheirfinancialgoalsandtakingstepstokeeptheirfamilyfinanciallyprepared.Likeitspredecessor, thenewsurveyaskeddecision‐makersabouttheirsavingand investmentsinsixspecificcategories. Fewerpeopletodayreporthavingsavedtowardoneormoreoftheirgoalsthandidsofifteenyearsago (80%vs.84%).Withlessmoneytogoaround,fewerAmericanshavestartedsavinginsomeimportant areas:  Fewerpeoplereportsavingforemergencies,leaving theirfamilymorevulnerabletothe upheavalcausedbyajoblossormajorunexpectedexpenses(63%vs.68%).  Fewerofthoseinfamilieswithacollege‐boundchildhavestartedtosaveforcollegeeducation (48%vs.56%),eventhoughcostsofacollegeeducationarerisingat arapidpace. Peopletodaymaybemoreinclinedtoputtheireconomicsecurityatriskto“keepupwiththeJoneses.” Theonlyareawherefamiliesaremorepronetosaveistowardamajorpurchase,likeanewcar, vacation,orhomeimprovementproject. TheproportionofAmericansnot yetretiredwhohaveatleastsomesavingsforretirementhasheld steady.However,afterthehitmanyfamiliestookafterthefinancialmeltdownfouryearsago,more non‐retireesfeeltheyarebehindwheretheyshouldbeinsavingfortheirretirement(51%vs.38%in 1997). MajorityHave aPlanforSpendingGoal,butfewhaveaFinancialPlan MostAmericanfamiliesdosomekindoffinancialplanningtohelpaccomplishtheirsavingsgoals,but relativelyfewhaveeverputtogetherthekindofdetailedfinancialplanthatmoneymanagement expertsrecommend.Whenaskediftheywereimplementinga plantomeetsavingsgoalsinsixspecific areas,abouttwo‐thirds(65%)ofdecision‐makerssaytheyfollowaplanforatleastoneoftheirsavings goals.Thiscompareswithonly31percentwhosaytheyhaveeverprepare dacomprehensivefinancial plan–orusedaprofessional toprepareone–thatincludesthingslikesavingsandinvestments, retirementplanning,andinsuranceneeds. Planningismostoftenreportedforsavingforone’sretirement.Asmanyashalf(49%)ofnon‐retirees saytheyhavebegunsavingforretirementandfollowaplanorscheduleforhowoften,how much,and wheretheyaresavingorinvestingforthispurpose.Sincethe1990s,trendsinworkplaceretirement benefitshaveshiftedawayfrompensionsandothervehicleswheretheemployermakesalldecisions toward401‐kandsimilarretirementplanswhereemployeesmakedirectcontributionsanddecisions themselves.Thesurvey foundasignificantincreaseinhowmanyofthoseenrolledin401‐korsimilar  6 plansmakeannualcontributions(77%vs.66%).Despitethispositivetrend,thenumberofnon‐retirees whosaytheyhaveaplaninplacetoinvestforretirementisessentiallyunchanged(49%vs.51%in 1997). Asmightbeexpected,thosewithhigherincomesaremorelikelytoplan.Overhalf (55%)ofthosewith householdincomesof$100,000ormorehaveacomprehensiveplan,comparedwithroughlyathird (35%)ofinthe$50,000‐$99,999bracket,andaquarter(25%)ofthoseinthe$25,000‐$49,999bracket. Suchplansareararityamongthosewithincomeslowerthan$25,000(10%). PlannersMoreConfidentAboutHandlingtheirFinances,FeelBetterabouttheirProgress Familieswithgreaterfinancialresourcesaremuchmorelikelytobesavingfortheircurrentandfuture financialgoals.Thenewsurveyshowsthatasfamilyincomelevelrises,sodoesthepercentageof decision‐makerswhosaythey haveatleastsomesavingsfortheirvariousgoals.Forexample,among thosewithincomesunder$25,000onlyaboutthreein10(31%)haveanythingsavedforemergencies, comparedwithninein10ofthosewithincomesof$100,000ormore.Similarrelationshipsbetween incomelevelsandsavingsrateswere observedin1997.Butwhileincomelevelmatters,financial planningisanotherkeyfactordistinguishingthosewhoarebetterpreparedfinanciallyfromthosewho arelesswellprepared.Thosewithacomprehensivefinancialplanshowthems elvestohavethe followingadvantagesovernon‐planners. Byamarginof52percentto 30percent,plannersaremorelikelytofeel“veryconfident”about managingmoney,savingsandinvestments.Inallfourincomecategoriesusedforanalysis,plannersare foundtobesignificantlymoreconfide ntthanthosewithoutacomprehensivefinancialplan.Planners arealsomorelikelytofeeltheyareonpace inmeetingalltheirspecificfinancialgoals,suchassavingfor retirement,emergencies,andcollege(50%vs.32%).Inallexceptthelowestincomecategories–where fewhaveacomprehensiveplan–plannersaresignificantlymorelikelytofeelgoodabouttheirprogress towardmeetingkeygoals. Plannersarealso morelikelythannon‐plannerstodescribethemselvesas“livingcomfortab ly” (48%vs. 22%).Thebenefitsherearemostevidentinthetwohighestincomecategories.Thosewitha householdincomeof$100,000ormoreandacomprehensiveplanaremostlikelytofeeltheyareliving thegoodlife. Butitisnoteworthythatasmanyplannersinthe$50,000‐$99,999incomebracketsay theylivecomfortablyasthoseearning$100,000ormorebutdonothaveacomprehensivefinancial plan (50%vs.46%).  7 PlanningBenefitsallIncomeLevels,notjusttheWealthy Thebenefitsofacomprehensivefinancialplanarefurtherdemonstratedbythesmartsavingandmoney managementpracticesassociatedwithit.Forthoseathigherincomelevels,plannersputmoreoftheir incomeintosavingsthannon‐plannersandreporthavingbuilt greaterwealth.Forexample,planners withincomesof$50,000‐$99,999aremorelikelythannon‐planne rstosaytheysave10percentoftheir incomeormore(57%vs.39%)andtohaveaccumulatedatleast$100,000ininvestmentssofar(37%vs. 19%).Similardifferencesarefoundbetweenplanners andnon‐plannersinthe$100,000ormore incomebracket. Financialplanningisoftenseenasatoolforthemoreaffluent,butthesurveypr ovidesstrongevidence thatthosewithmodestincomesalsobenefit.Familieswithfewerfinancial resourcesaremost vulnerabletocreditcarddebtspiralingoutofcontrol. Havingafinancialplanisassociatedwithhandling creditcardbillsinawaythatminimizesriskofcreditcarddebtproblems.Amongthoseinthe$25,000‐ $49,999incomecategory,46percentofthosewithaplansaytheyusuallypaytheircreditcardbillinfull eachmonth,compared with26percentofnon‐planners.Themarginis41percentto16percent betweenplannersandnon‐plannersintheunder$25,000category. AbouttheSurvey TheseareamongthefindingsofasurveyjointlysponsoredbyCertifiedFinancialPlannerBoardof Standards,Inc.andtheConsumerFederationofAmerica.Thesurveyincludedtelephoneinterviews witharepresentativesampleof1,508financialdecisionmakersnationwide.Thesurvey,conductedby PrincetonSurveyResearchAssociatesInternational,askedquestionsabout thehousehold’sfinancial goalsandliabilities,thehousehold’sstrategyforsavingandinvesting,aswellasspecificsofhowmuch wasbeingsavedandinvested.Sixfinancialgoalswereinvestigatedindepth:savingforemergencies,for retirement,foramajorpurchase,forachild’scollegeeducation,foradownpayment onahouse,andto helpaparentorolderrelativewithlivingormedicalexpenses.InterviewswereconductedfromMay7‐ 20,2012. Themarginofsamplingerrorforresultsbasedontotalsampleatthe95percentlevelofconfidenceis plusorminusthreepercentagepoints.Questionwording andthepracticaldifficultiesinconducting surveyscanalsointroduceerrorinsurveyestimates.Adescri ptionofthesurveymethodologyanda questionnaireannotatedwiththesurveyresultsareincludedintheappendixthatfollowsthedetailed findings.  8 SECTION1:CURRENTECONOMICLANDSCAPE Theeconomiclandscapehaschangedsignificantlyinthe15yearssince thissurveywaslastconducted. TheCFPBoard/ConsumerFederationofAmericaHouseholdFinancialPlanningsurveyfindsthatdecision makerstodayarehavingatoughertimeintoday’seconomy.Thecurrentsurveymeasuredmanyofthe sameattitudesandbehaviorsas theinitialsurveydidin1997.Formanytheirpersonaleconomic conditionsarenotaspositiveasin1997.Today,just30percentoffinancialdecisionmakers 2 saythey livecomfortably,comparedwith38percentwhoreporteddoingsoin1997.Conversely,moredecision makersreportthattheyhavejustenoughtomeettheirbasiclivingexpensesortheydon’thaveenough tomeettheseexpenses(38%),comparedwithjust31percentwhoreportedsimilarconditionsin 1997. FormanyAmericans,theideaofahomeasafinancialinvestmenthasfaded.Whiletheoverallrateof homeownershiphasremainedthesame,fewerdecisionmakerswhodonotownahomereportthat theyplantobuyone(61%in2012v.69%in1997 ).Amongthose whoalreadyownahomefewersay theyarelikelytohaveitpaidoffbythetimetheyretire.In1997,82percentreportedtheywouldhave theirhomepaidforbythetimetheyretire,comparedto76percentinthecurrentsurvey.Forabout one‐quarterof decisionmakers,theirinvestmentinahomehaslostmoney.Twenty‐threepercentof thosewithmortgagessaythattheyowemoreontheirmortgagethentheycouldsell thehousefor.   Decisionmakers’perceptionsoftheirretirementhavechangedaswell.Inthecurrentsurvey,one‐third (34%)of thosenotyetretiredsaytheywouldbeabletoretirebeforeage65.Thisisdownsignificantly from50percentin1997whoreportedtheyexpectedtoretirebeforeage65(seeFigure1).  2 Financialdecisionmakerswereselectedbyasking“Whousuallymakesthefinancialdecisionsinyour household?”Thosethatmakesolelyorsharethedecisionmakingwereeligibleforthesurvey. 50% 34% 0% 20% 40% 60% 80% 100% 1997 2012 Figure1:PlantoRetirebeforeage65 Basedonthosenotyetretire 1997 2012  9 SECTION2:SAVINGANDPLANNINGTOMEETFINANCIALGOALS Whiletheconditionshavechangeddramatically,amajority ofdecisionmakersstillreporttheyhave savingsorinvestmentsforatleastoneoftheirfinancialgoals.Eightin10Americans(80%)havesome savingsforatleastoneofthefinancialgoalsaskedaboutinthe2012survey.Thisis adecreasefromthe 84percentofdecisionmakerswhoreportedtheyhadsomesavingsforanyofthespecificfinancialgoals inthe1997survey. Althoughalargemajorityofdecisionmakersaresaving fortheirfinancialgoals,manyfindfinancial investmentsandstrategiesconfusing.One‐halfof respondents saythestatement‘investingseems complicated’describesthemveryorsomewhatwell, similartothe1997finding.Similarmajoritiesof decisionmakersalsosay‘it’shardtoknowwhototrust forfinancialadvice,’andthat‘I’mworriedaboutlosing mymoneyifIinvestit’describesthemveryor somewhat well( seeTable1).Giventhevolatilestock marketoverthepastdecade,itisnotsurprisingthata largershareofrespondentsinthecurrentsurveysay theyareworriedaboutlosingmoneyiftheyinvestit, thandidsoin1997. Inadditiontothecomplicatednature ofinvestment choices,foralargenumberofrespondentsthereare alsobarrierstosaving,suchasbelievingthattheirearningsareinsufficienttosaveregularlyandthat unexpectedexpensesmakeithardtosticktoabudget. Lookingatthespecificsixgoalsaskedaboutinthesurvey,amajority ofthosewitheachofthefollowing goalsreporttheyhavesavingsforthem:emergencies,futureretirement, andamajorpurchase(see Table2).Justaboutone‐halfreporttheyaresavingforachild’scollegeeducation,andfarfewer decisionmakersreporttheyaresavingforadown paymentforthepurchaseofahouseinthenext10 years,ortohelpparentsorotherolderrelativeswithlivingormedicalexpenses.  Table1:FeelingsaboutFinancialMatters DescribesVeryorSomewhatWell… It’shardformetoknowwhoto trustforfinancialadvice 2012 55% 1997 54% I’mworriedaboutlosingmy moneyifIinvestit 2012 55% 1997 45% Tome,investingseems complicated 2012 52% 1997 55% Iprefernottothinkaboutmoney 2012 43% 1997 42% Unexpectedexpensesmakeit hardformetosticktoabudget 2012 59% 1997 58% Ijustdon’tearnenoughtosave regularly 2012 51% 1997 54%  10 Table2:Saving&PlanningforSpecificFinancialGoals Basedonthosewitheachspecifiedgoal  Total Saving forGoal Saving& HavePlan forGoal Savingfor Goal,but NoPlanfor Goal Total Not Saving forGoal N’s Emergencies 2012 63% 35% 28% 36% 1508 1997 68% 39% 29% 31% 177 0 FutureRetirement     2012 61% 49% 12% 39% 984 1997 64% 51% 13% 35% 1451 CurrentRetirement     2012 62% n/a n/a 35% 524 1997 61% n/a n/a 35% 319 Majorpurchase 2012 60% 37% 22% 40% 643 1997 52% 32% 19% 46% 821 College 2012 48% 31% 17% 52% 409 1997 56% 36% 20% 43% 635 Downpaymentonhouse    2012 34% 17% 17% 66% 228 1997 34% 15% 19% 66% 365 Helpparentswith medicalexpenses   2012 14% 7% 7% 85% 437 1997 17% 10% 7% 82% 503 Therehavebeensomechangessince1997inthesharesofrespondentsreportingtheyaresavingfor theirvariousgoals.Fewerfinancialdeci sionmakersreporttheyaresavingforemergenciesthandidso 15yearsago.Likewise,fewerdecisionmakerswiththegoalofsendingachildtocollegehavesavings  forthisgoal. Akeycomponentofsavingsuccessfullyishavingapl antosave.Ingeneral,decisionmakerswitha specificgoalareplanningforthisgoalaswell.Forexample,37percentofdecisionmakersaresaving andplanningforamajorpurchase,comparedwith22percentwho aresavingbutdonothaveaplan. Whenlookingatplanningforone’sspecificfinancialgoals,theonlystatisticallysignificantchangefrom 1997isinhavingaplanforemergencyexpenses,few errespondentsinthecurrentsurveyreportthat theyhaveaplanforsaving. Unsurprisingly,annualincomeisclosely relatedtowhetherahouseholdhassavingstomeetitsfinancial goals.Asannualincomeincreasessodoestheshareofrespondentswitheachgoalwhosaytheyare [...]... 88%  83%    21    Comprehensive Financial Planning As in 1997, the current survey clearly shows the benefits of having a comprehensive financial plan for all  decision makers, a plan that includes savings and investments, planning for retirement and insurance  needs4.  The current survey findings demonstrate that decision makers with a comprehensive financial plan are more financially confident and comfortable than those without a plan.  In addition, the current ... plan are more financially confident and comfortable than those without a plan.  In addition, the current  research shows they have more positive financial outcomes.  Although current and past results show the importance of financial planning,  few respondents have ever  created a comprehensive financial plan (see Figure 8).  In the current survey,  just 31 percent of financial decision makers’ report that they have ever prepared a comprehensive financial plan or had one  prepared for them.   ... In 1997, only those decision makers who reported they had some savings for any of the specific financial goals were asked whether or not they had a comprehensive financial plan. This appendix reports results  on this ‘Savers’ base from 1997, and compares to the 2012 based on the same ‘Savers’ definition.  As in 1997, the current survey clearly shows that people at all income levels benefit from having a  financial plan.  The survey demonstrates that decision makers who are saving for any financial goal ... The 2012 Household Planning Survey – sponsored by CFP Board and the Consumer Federation of  America – obtained telephone interviews with a nationally representative sample of 1,508 financial decision makers living in the continental United States. Interviews were conducted via landline (nLL=906)  and cell phone (nC=602, including 309 without a landline phone). The survey was conducted by  Princeton Survey Research Associates International. The interviews were administered in English and ... Similar to saving for emergencies and retirement, reducing debt is a major financial goal for significant  proportion of decision makers.  One‐half of household financial decision makers in the survey report  some sort of household debt – including credit cards and college loans for either their own college  education or their child’s.    Forty‐seven percent of financial decision makers report they have some credit card debt.  Fourteen ... The current survey findings also indicate that decision makers with a comprehensive financial plan in  place are more likely to be financially prepared than those without a plan in place.  Financial preparedness was measured in several ways, including months of emergency expenses, annual savings  rate, and overall savings.  Those with financial plans are also more likely to avoid some financial pitfalls, ... Based on those with goal of reducing credit card debt OK 47% No Answer 3% Behind 36% Ahead 14% 19    SECTION 4: THE IMPORTANCE OF FINANCIAL PLANNING Emergency and Retirement Planning The relationship between planning and financial confidence is strong.  Earlier sections of this report  showed a relationship between having a plan for a specific financial goal and one’s assessment of their  progress towards achieving that specific goal.  Six in 10 decision makers (63%) have either a plan for ... financial plan.  The survey demonstrates that decision makers who are saving for any financial goal  (‘Savers’) and who have a financial plan feel and behave differently than those without a plan.6  In  addition, the current research shows they have more positive financial outcomes.  In both the 1997 and 2012,  few ‘Savers’ have created a comprehensive financial plan.  In the current  survey,  36 percent of ‘Savers’ report that they have ever prepared a comprehensive financial plan or had  one prepared for them.  This finding is statistically the same as the share that reported doing so in 1997 ... for Specific Financial Goals Based on those with each specified goal Feel  Ahead/About  Behind/Should  Right/Ok to    Have Started   Start Later  N’s  Emergencies      1508 2012 41%  54%  1770 1997 39%  57%  Future      Retirement   984 2012 51%  45%  1451 1997 38%  60%  Major purchase      643 2012 38%  58%  821 1997 36%  60%  College      409 2012 52%  42%  635 1997 45%  52%  Down payment      on house  228 2012. .. Looking at the specific indicators of financial preparedness, 42 percent of those with a financial plan  have 10 months or more of emergency expenses saved compared to 16 percent of those who do not  23    have a plan.  One‐half of those with a financial plan are saving at least 10 percent of their income every  year compared to one‐quarter of those without a financial plan.  Those with a financial plan are also  .           2012 HOUSEHOLD FINANCIAL PLANNING SURVEY  ASummaryofKeyFindings July23, 2012  Preparedfor: Certified Financial PlannerBoardofStandards,Inc.andtheConsumerFederationofAmerica Preparedby: Princeton Survey ResearchAssociatesInternational  2  Contents EXECUTIVESUMMARY. 18 SECTION4:THEIMPORTANCEOF FINANCIAL PLANNING 20 EmergencyandRetirement Planning 20 Comprehensive Financial Planning 22 APPENDIX 26 SAVERSANALYSIS