Pumped up

Americans named spiking gasoline prices in the summer of 2008 as the No. 1 factor that affected their financial well-being in the last decade, according to the Principal Financial Well-Being Index.

The Index is built from a survey conducted by Harris Interactive. Between Oct. 20, and Oct. 30, Harris surveyed 1,120 employees and 602 retirees.

Survey results show that 26% of workers and 22% of retirees ranked high gas prices as their top concern, ahead of the decline in the real estate market over the last three years (14% of workers and 12% of retirees) and the Dow Jones Industrial Average’s slide below 7,000 in March 2009 (13% of workers and 20% of retirees).

“As we all struggle to overcome recent economic turmoil, Americans are laying a new financial foundation for their future and focusing on rebuilding their savings responsibly,” Dan Houston, president of retirement and investor services at the Principal Financial Group, said in a statement. “While planning for the long term, workers and retirees are also mindful of possible near-term downturns as we continue to rebuild as a nation.”

OTHER SURVEY FINDINGS
• When asked to name the most important lesson they learned from the past decade, both workers and retirees said having an emergency fund in the event of unforeseen illness, disaster or job loss was No. 1.

• To the above point, 17% of workers and 14% of retirees said they tapped into their emergency fund recently to cover monthly expenses.

• Respondents said their top two financial New Year’s resolutions are putting a set amount of money into savings each month (32% of workers and 19% of retirees) and paying off credit card debt (33% of workers and 19% of retirees).

• More than half of workers and retirees (59% and 53%) are tracking their finances more closely as a result of the downturn. The majority of both workers and retirees (74% and 77%) said they will continue to spend less after the downturn comes to an end.

• More than a third of workers (37%) and 24% of retirees say they feel better off financially now than they did at the beginning of 2009.

• Three out of 10 workers (31%) and two out of 10 retirees (20%) choose “optimistic” to describe their sentiment toward the economy.

• Workers have increased the amount they are saving for retirement in the past six months, with 18% reporting this for fourth quarter 2009, compared with 14% in the second quarter of this year.