Just over half (58 percent) of upstate New Yorkers surveyed say that it is somewhat or completely true that they spend more time now worrying about money compared to previous years, and 57 percent had income and expenses last year that were about the same as the previous year. That’s according to the Times Union/Siena […]
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Just over half (58 percent) of upstate New Yorkers surveyed say that it is somewhat or completely true that they spend more time now worrying about money compared to previous years, and 57 percent had income and expenses last year that were about the same as the previous year.
That’s according to the Times Union/Siena College poll of upstate New York residents released Sept. 22. Gramercy Communications sponsored the poll.
Gramercy Communications is an independently owned, strategic-communications firm based in Troy, near Albany.
The survey found only 30 percent of respondents say that they are better off today than during the recession and only 31 percent are more optimistic today about their financial future than during the recession that stretched from 2007 to 2009.
In addition, nearly two-thirds of respondents (64 percent) believe the nation’s best economic days are behind it and that the next generation will have to accept a lower standard of living.
“We asked that question in 2011. It was 55 [percent to] 41 [percent on the negative side]. We asked that question in August 2009. It was 54 [percent to] 42 [percent on the negative side]. So, that held pretty solid from August ‘09 through April ‘13,” says Don Levy, SRI director.
Levy noted that April 2013 was the last time Siena conducted a survey in which researchers asked the “economy’s best days” question before this current survey.
He spoke with the Business Journal News Network on Sept. 26.
Even with an improved stock market and an “arguably improved” national economy, a “much greater” percentage of Upstaters believe the economy’s best days are in the rear-view mirror, he says.
Financial progression
Despite half of Upstaters saying that they are about the same financially as they were a year ago, a majority of them are concerned about their ability to maintain their current standard of living, according to Levy.
“How long can you tread water before treading water feels like you’re going backwards?,” Levy asks rhetorically, pondering the data on respondents’ financial concerns.
The survey found most Upstaters are at least holding their own financially, and between 20 percent and 30 percent of respondents see improvement. However, few expect the economy to improve, says Levy.
“Unfortunately, staying even, worrying about staying even, being concerned that staying even is not good enough, is wearing on people. That’s what this survey says,” says Levy.
Today, financial pressures persist as 75 percent are concerned about coming winter-energy bills, 74 percent feel the pinch of food prices, 64 percent find gasoline costs problematic, and 57 percent are concerned about the cost of health care, including insurance, visits, and meds.
In the six to seven years since the national economic downturn began, upstate New Yorkers have used a host of strategies to cut their spending and keep their heads above water.
The survey found 62 percent started to use coupons, 57 percent postponed household maintenance, 55 percent delayed major purchases, 50 percent withdrew money from savings or retirement accounts, 46 percent gave up a hobby, and 30 percent borrowed money from family or friends.
Still, 36 percent report having fallen behind on their bills.
When asked directly whether they expect to be better off financially a year from today, just over a quarter of respondents say ‘yes’, a majority expect no change and one in seven anticipates things getting worse, according to the survey.
“I think an underlying belief is that, ‘hey, we’re Americans … we’re supposed to make progress, and I don’t feel like I’m making progress,’ ” says Levy
The survey also found about 30 percent believe the economy is going to improve over the next 12 months. Siena researchers also asked respondents to think about 10 years from now, in 2024, and only 31 percent believe that economic conditions will have improved.
The survey also found 68 percent believe that a young person coming of age today in upstate New York has less opportunity for success than someone 25 years ago.
Retirement
The survey found 38 percent of Upstaters are afraid they are going to have to postpone their retirement because of how the economy has been over the past few years.
Slightly more, 42 percent have over the past six months added at least a small amount to their retirement savings beyond any employer contribution.
But when asked to assess their retirement preparation, only 30 percent of respondents say that they are well along their path to successfully retiring.
Another 35 percent say they have made a start but lack a complete plan and one-third admit having their “head in the sand” and that they really haven’t done what they should to prepare, according to Siena.
Contact Reinhardt at ereinhardt@cnybj.com