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U.S. financial security index reaches highest level in six months

Jan 12, 2012 Philip Burgess

Americans' financial security appears to be the highest its been in six months, according to the most recent Financial Security Index from The index climbed 3.3 points in December to reach 95.8 points, the highest figure since June. Improvement was noted in each index component, which includes job security, savings, debt, net worth and overall financial situation. Surprisingly, job security noted the biggest improvement in December, flouting continued high unemployment and tepid job creation. The study also found Americans under the age of 30 tend to feel more secure than other generations. U.S. households earning more than $75,000 per year are more comfortable than others and were more likely to see salaries increased from a year ago. But despite the improvements, financial security remains mired in recession-era figures, as difficult financial and credit decisions stymie consumer confidence. "2011 was not a year of progress in terms of consumers' financial security," said Greg McBride, CFA and senior financial analyst for Bankrate. "Each component - job security, savings, debt, net worth and overall financial situation - ended 2011 lower than where it was in January."