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How people in different countries view financial concerns and objectives

We’re all concerned about the effect of social and economic conditions on our personal finances. However, it may surprise you to know that -- while financial issues are universal -- the things that may concern you are not necessarily the same as those that bother people in other countries.

A 10-country study was conducted between July 22 and August 22 among more than 10 thousand participants. It found that, although mass culture and consumer tastes around the world seem to be converging at an increasingly rapid rate, when it comes to personal financial concerns and goals the differences among countries remain marked.

Last week, American Express reported these key findings:

• Retirement and unemployment are the two top financial concerns.
• Still, most consumers appear mildly optimistic about their financial position over the next year.
• Concern about saving enough money was almost universal.
• However, across the 10 countries surveyed, about one-quarter of the people surveyed said they do not save or invest.
• Findings showed a wide variation when it comes to getting financial advice on savings and investments – some respondents turn to banks, others ask friends and relatives or simply rely on their own judgment.

Why people save and invest
In the U.S., U.K. and Germany, retirement is the number one savings and investment objective, while having enough money to weather an emergency ranks number one in France, Hong Kong, Italy, Singapore and Taiwan. In India, funding children’s education is the top goal.

What concerns them the most
Financial concerns also varied substantially across borders. In Hong Kong, Singapore, Taiwan, France and Italy, consumers cited high unemployment as their top concern. Germans and Japanese singled out high taxes.

One common theme, though, was concern about the adequacy of savings and investments. In only two countries, the U.K. and India, did a majority of consumers feel they were saving enough.

The consequences of uncertainty
"The survey picks up on two trends we've seen in the various markets," says Piero Grandi, managing director and head, global Personal Financial Services at American Express Bank. "First, people are concerned about a graying population and the large number of workers who will be retiring from the work force over the next several decades. They're questioning whether traditional retirement programs and pension plans will provide adequate support in their old age.

"Second, consumers are worried about job security and coping with financial emergencies. That's especially true in countries in recession, recovering from an economic slowdown, or, as is the case in many European markets, experiencing slow job growth."

Jan Holman, vice president of investment services at American Express Financial Advisors concurs, saying, "Given these uncertainties, it's not surprising that consumers are worried about the adequacy of their savings. People are realizing they need to take more responsibility for their financial futures. Not only is having enough money for individual needs important, like saving for a child’s college education or saving for retirement, but having a cash reserve in case of emergencies is essential."

Complete survey results for all of the 10 countries surveyed have been released.

October 7, 1999

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