Financial satisfaction of people in the U.S. rebounded strongly in the third quarter of the year, according to a new survey by the American Institute of CPAs, reversing the lows in the second quarter in the midst of the recession brought on by the novel coronavirus pandemic.
The AICPA’s Q3 2020 Personal Financial Satisfaction Index measured 33.1, representing a whopping 99 percent (16.5 point) increase from the previous quarter. That’s the biggest quarterly increase in the 27-year history of the PFSi, and a complete turnaround from the second quarter, when the index had its largest ever quarterly drop.
Tom Super is Director of J.D. Power’s Insurance Practice and is responsible for leading the continued expansion of the P&C practice.
Super, who most recently served as Director of Strategy for Farmers Insurance Group, has spent 15 years in strategy and general management for such high-profile companies as Booz & Company, The White House and AT&T Corp. While at Farmers, he was a key contributor to the revitalization of the brand, serving in strategy and consumer research areas during his tenure. Prior to joining Farmers, Super was a consultant with Booz & Company as part of the firm’s premier organization and strategy management team. There he advised clients across several industries including consumer, retail, financial services, automotive, media, transportation, health, bio-tech and defense. As an Aide in the White House, Super worked on a wide range of economic and budgetary policy issues on behalf of the President George W. Bush.
Having written or contributed to a number of articles on trends affecting the industry, Tom is a recognized thought-leader in the P&C Insurance space. He has a master’s degree in public administration from the American University School of Public Affairs and received his bachelor’s degree in business from Robert Morris University.
Jared Stevenson is manager of business development and partnerships at Centric Digital. Jared has worked in a wide variety of roles, including operations and academics at Kaplan Test Prep, editing and operations at the National Academy of Sciences, and outreach at Genetic Alliance, an advocacy organization, in Washington D.C.. He spent two years consulting on human rights initiatives in Jakarta, Indonesia. Jared holds a B.S. in Biology, with a concentration in genetics, from Fairfield University in Fairfield, Connecticut.
Davia Temin is the chief executive of Temin and Co., a New York consultancy focused on reputation and crisis management.
The PFSi is built around various factors, including the labor market. The gains can be mainly attributed to improvements in job openings per capita and underemployment. Those had the biggest impact on increasing the overall PFSi. The biggest factor driving the quarter-over-quarter rally was a 35 percent (37 point) decrease in underemployment. A decrease in underemployment improves overall financial satisfaction in the index. While there was an improvement in underemployment in the third quarter from Q2’s record high, it’s still 117 percent above its level a year ago. For the second consecutive quarter, underemployment is still the biggest negative contributor to the average American’s personal financial satisfaction. The Q3 underemployment level reflects data measured through the middle of September.
“As Americans continue to navigate the economic impact of the COVID-19 pandemic, it is important to remember that the fundamentals of financial planning haven’t changed,” said AICPA PFS Credential Committee chair Dave Stolz in a statement Thursday. “Though the stock market’s record performance is encouraging, 2020 has served as a reminder of the volatile nature of markets. As the impact of COVID-19 continues to play out across the country, investors should weigh their risk tolerance and ensure they have ample cash on hand. Further, a tax-efficient financial plan that includes a diversified portfolio can give confidence that long-term financial goals will remain within reach through this period of extreme uncertainty.”
The coronavirus put millions out of work, prompting job openings per capita to show a record plummet earlier this year. In the third quarter, job openings started to recover, climbing 37 percent (20 points) compared to Q2. That factor is now only 10 percent below its measurement a year ago before the pandemic. The Q3 index comes from July data from the U.S. Bureau of Labor Statistics.
