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Nearly 60 percent of Americans have high money anxiety over not having enough money for their retirement –Gallup study reveals.

Gallup's annual Economy and Personal Finance poll shows that 59 percent of Americans are very or moderately worried about not having enough money for their retirement years.  The study also shows that money anxiety over retirement was the highest among eight other categories of financial concern such as ability to pay for medical costs and money to maintain standard of leaving.

Money anxiety over retirement varies by age groups. The age group of 30-64 reported the highest level of money anxiety.  Among this age group, 70 percent indicated that money anxiety over retirement is their highest financial concern.  The second highest age group was 50-64 with 68 percent of respondents indicated that retirement is their greatest cause of money anxiety.

The study shows that the percentage of people with money anxiety over retirement fluctuated in the last decade from a low of 52 percent during the last economic boom in 2004 to a high of 66 percent during the aftermath of the Great Recession in 2010.  The fluctuation in the level of worry over retirement mirrors the pattern of the Money Anxiety Index, which reached a low of 57.3 in April of 2004 and increased to a high of 96.2 in November of 2010.  The Money Anxiety Index average for the past 50 years stands at 70.7 index points.

The impact of money anxiety on consumer financial behavior is demonstrated in the book Money Anxiety (www.moneyanxiety.com), which is available in paperback and eBook formats in all major online booksellers such as Amazon, Barnes and Noble, Google Play and iTunes store.  

 
 
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Retail sales excluding automobiles rose 0.4 percent reflecting a decrease in the level of money anxiety among consumers. 

Sales growth is evident across multiple sectors with the strongest sales growth observed in health & personal care items, general merchandise stores, clothing stores and non-store retailers. Including automobile, retail sales increased 0.2 percent.

June increase in retail sales comes after an unworthy revised 0.5 percent increase in May mirroring the trend in the Money Anxiety Index showing continued improvement in the level of consumer financial anxiety from 74.0 in April to 71.3 in June. 

 The link between the level of money anxiety and retail sales is very storing and significant.  When consumers have a lower level of money anxiety they spend more thus increasing retail sales.

Employment creation is a significant factor in decreasing the level of money anxiety.  In the second quarter of this year, the economy added a total of 793,000 non-farm jobs; 288,000 in April, 217,000 in May and 288,000 in June.  When job creation increases, consumers feel more secure in their current jobs, or are more encouraged about the prospects of finding a job, which leads to an increase in spending and economic growth.

The impact of money anxiety on consumer financial behavior is demonstrated in the book Money Anxiety (www.moneyanxiety.com).  Money Anxiety is available in paperback and eBook formats in all major online booksellers such as Amazon, Barnes and Noble, Google Play and iTunes store.  

 
 
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July Money Anxiety Index decreased 0.2 from June indicating consumers continue to feel more confident about their personal finances and the economy.

July preliminary Money Anxiety Index decreased 0.2 index points to 71.3 indicating an improvement in the level of financial anxiety among consumers.  July’s improvement is the forth consecutive month of declining financial anxiety among consumers, who feel more confident about their personal finances and the economy mainly due to meaningful increases in employment in the second quarter of this year.

Employment creation is a significant factor in the level of money anxiety.  In the second quarter of this year, the economy added a total of 793,000 non-farm jobs; 288,000 in April, 217,000 in May and 288,000 in June.  When job creation increases, consumers feel more secure in their current jobs, or are more encouraged about the prospects of finding a job, which leads to an increase in spending and economic growth.

July’s improvement in the Money Anxiety Index is consistent with a trend that started a year ago.  In June of 2013, the Money Anxiety Index reached a high of 90.4 but kept on declining ever since to its current level of 71.3 – a cumulative decrease of 19.1 index points.  Although there were bumps along the way, when the Money Anxiety Index increased slightly for one month, the 12-month trend line clearly shows that consumers feel more confident about their personal finances and the economy.