WASHINGTON, Oct. 10, 2019 /PRNewswire/ -- New research released today by the Certified Financial Planner Board of Standards, Inc. (CFP Board) found that 55 percent of adults believe a recession will occur in the next year but those who have enlisted the help of a financial advisor, and have a written financial plan, feel more confident that they can weather an economic storm.
Nearly two-thirds (65 percent) of adults working with a financial advisor said they feel more prepared now for a potential recession than they did in 2008. When looking specifically at those who work with a CFP® professional, 73 percent of respondents said they feel more prepared now than they did in 2008.
Additional survey findings include:
- Consumers are generally optimistic—59 percent have an optimistic view of their household or personal financial situations while 52 percent are optimistic about the future of the U.S. economy;
- However, nearly two-thirds of adults (63 percent) are concerned about the possibility of an economic recession, with a quarter (25 percent) who said that they are very concerned;
- Seventy-six percent said a recession would have an impact on their household, while more than a third (36 percent) said it would have a major impact;
"When looking at these findings, it is clear many Americans are concerned about the possibility of a recession occurring within the next twelve months, but those who work with a financial advisor – and specifically a CFP® professional – have much more confidence about their finances when faced with the prospect of a recession," said Kevin R. Keller, CEO of CFP Board. "While we will not know precisely when the next recession will occur, it is imperative that consumers feel prepared and assured in their ability to withstand the pressures of a financial downturn."
The survey showed three key themes when it comes to consumers' views on a recession:
1. Financial advisors have made a difference in making people feel prepared.
Adults working with a financial advisor (67 percent) are much more likely to say they would feel prepared for a recession than those who are not working with a financial advisor (38 percent). What's more, 59 percent of people working with an advisor say that a recession is likely to have minor to no impact on their household and three-quarters (77 percent) said they are confident their advisor would successfully manage their finances through a recession.
2. Women are more concerned by and feel less prepared for a recession.
Sixty-eight percent of women, compared with 58 percent of men, said that they were concerned about a potential recession. When asked whether they were prepared for such an outcome, 51 percent of men replied in the affirmative, compared to only 36 percent of women – although these numbers do improve when posed to men and women who work with financial advisors. According to the survey, 77 percent of men and 58 percent of women with a financial advisor said they would feel prepared for a recession, representing 26-point and 22-point increases, respectively.
3. Homeowners feel more prepared for the next recession.
Fifty-one percent of homeowners, compared with 36 percent of non-homeowners, feel more financially prepared for a recession than they did during 2008. Overall, homeowners have much more confidence about their finances and recession preparedness than those who don't own a home. More than two-thirds (67 percent) of homeowners feel optimistic about their personal or household financial situation, a 16-point difference from non-homeowners (51 percent).
This polling was conducted from September 17-18, 2019 among a national sample of 2,196 Adults and from September 24-26, 2019 among a national sample of 2,200 Adults. The interviews were conducted online and the data were weighted to approximate a target sample of Adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the both surveys have a margin of error of plus or minus 2 percentage points.
ABOUT CFP BOARD
Certified Financial Planner Board of Standards, Inc. is the professional body for personal financial planners in the U.S. CFP Board sets standards for financial planning and administers the prestigious CFP® certification – one of the most respected certifications in financial services – so that the public has access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for Financial Planning, is committed to increasing the public's awareness of CFP® certification and access to a diverse, ethical and competent financial planning workforce. Widely recognized by firms and consumer groups as the standard for financial planning, CFP® certification is held by more than 84,000 people in the United States.
SOURCE Certified Financial Planner Board of Standards, Inc.