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TNS STUDY FINDS A DECREASE IN THE NUMBER OF AFFLUENT HOUSEHOLDS
September 2nd, 2008
Annual Survey of Wealthy Households Also Reveals that Affluent Confidence is Down
(New York, Sept 2, 2008) – TNS, a world leader in market insight and information, today released the first wave of results from its annual Affluent Market Research Program (AMRP). For the first time since 2002, TNS found that the number of Affluent households in the U.S. has decreased in a single year. In 2007, there were an estimated 16.4 million households with $500,000 net worth, not including primary residence. TNS’ 2008 estimates now put the number at 15.6 million, a decline of five percentage points.
“The decline in households is not surprising given economic conditions,” commented Ellen Sills-Levy, SVP, Investment, TNS North America. “After several years of strong gains, all three major stock market indices posted losses over the past year. Coupled with the impact of increasing inflation and a depreciating real estate market, even the Affluent are feeling the strain.”
That strain is translating into somewhat shaken confidence among Affluent investors. TNS asked the Affluent to rate whether they think different elements of the U.S. economy and their personal finances will be better, the same or worse in the next six months. The results:
• Only one-fifth (19 percent) expect the ‘overall U.S. economy’ will be better in the next six months while 70% think it will remain the same
• Twenty-eight percent of Affluent think the ‘broad stock market’ (e.g., the S&P 500) will be better, with 38 percent indicating they believe it will remain the same
• Thirty-four percent think the ‘value of their household investments’ will be better in the next six months and 43 percent think it will remain the same
“Although the majority of the Affluent are not overly optimistic about the future, it’s important to note they are not wholly pessimistic either,” commented Sills-Levy. “Certainly, with over three-quarters of Affluent households anticipating that the ‘value of their investments’ will be the same or better, the Affluent are looking towards the future with caution, not panic.”
This is further emphasized by their outlook on their employers: 79 percent of Affluent think the ‘financial health of their employer’ will be the same over the next six months, and 12 percent think it will be better.
“The fact that nine in 10 Affluent feel their employer’s financial health will remain stable, or even improve is very telling.” Continued Sills-Levy, “Where the economy will lead us in the next year is uncertain, but clearly the Affluent, as well as the rest of us, will be carefully monitoring its progress. In the meantime, they remain cautious about the immediate future.”
About the TNS Financial Services Affluent Market Research Program:
AMRP has been providing the financial services community with critical data and insights since 1981. The study is based on a representative national sample of over 4,269 households with a net worth of $500,000 or more, excluding primary residence.
TNS is a leading provider of market data for the financial services industry. In addition to AMRP, TNS offers extensive research on small business banking and consumer credit card usage. These programs are part of a global inventory of 43 syndicated research programs.
About TNS
TNS is a global market information and insight group.
Its strategic goal is to be recognized as the global leader in delivering value-added information and insights that help its clients make more effective business decisions.
TNS delivers innovative thinking and excellent service across a network of 80 countries. Working in partnership with clients, TNS provides high-quality information, analysis and insight that improves understanding of consumer behavior.
TNS is the world’s leading provider of customized services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management and Retail & Shopper. TNS is a major supplier of consumer panel, media intelligence and audience measurement services.
TNS is the sixth sense of business™.
www.tns-us.com
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