The Economy Is Still The Chief Concern Of The Affluent

New York, NY - As a follow-up to its well-known and well-respected Mendelsohn Affluent Survey (currently being fielded for its 33rd consecutive year), Ipsos Mendelsohn recently conducted its quarterly online Barometer survey among affluent adults during April 2009. In it, some 1000 people in households with household incomes of $100,000 or more were asked to candidly assess and share their current concerns and opinions about the changing world around them.

The three biggest concerns of 16 potential issues measured in Spring 09 according to all Affluent households surveyed were:

• The economy (46%);
• Health care (31%);
• Unemployment and jobs (28%).

Compared to the Winter Barometer, the top three worries are the same as far as rank order goes. However the percentage of affluent households reporting each of them as a concern has declined since the Winter survey and in one case (in regard to the economy) markedly:

• The economy (from 60% to 46%);
• Health care (from 33% to 31%);
• Unemployment and jobs (from 32% to 28%).

These are some of the findings of an Ipsos Mendelsohn Affluent Barometer survey conducted April 23-27, 2009. For the survey, a national sample of 1000 adults aged 18 and older with a household income of $100,000 per year or more from Ipsos' U.S. online panel were interviewed online. Weighting and sample balancing were employed to ensure that the sample's composition reflects that of the actual U.S. adult population with annual HHI of $100K+ according to U.S. Census data.

Highest Income Group Has a Different Take on Economy's Woes

Only the highest income segment (those with HHI of $200k+) DIDN'T claim the economy was their #1 concern. They chose `Corruption/scandals' as their chief worry, followed by `Moral decline' and then `the economy' as its third place ranking. This most affluent group also lowered the importance of Health care concerns to 9th place (the lowest ranking of any group measured) trailing Taxes, Terrorism and Planning for retirement.

Three areas of concern actually increased markedly since the Winter survey, including:

• Moral decline (up from 19% in the Winter to 26% in the Spring)
• Corruption and financial or political scandals (up from 16% in the Winter to 25% in the Spring)
• Immigration (up from 8% in the Winter to 14% this Spring)

Recession's Impact Also Varies by Affluent Group

When Affluent households were asked this Spring about how, if at all, the current recession has negatively impacted their household, their responses were:

• 17% `Not at all';
• 61% `Somewhat';
• 22% `A lot'.

When asked whether someone in their affluent household has been laid off in 2009, about one in six (16%) answered yes. This percentage ballooned to 38% among those aged 18 to 34 but dropped to only 9% among those 55 years of age or older. Fortunately, when asked if this laid off person had found a new job, overall 38% reportedly had.

In addition to being asked their three biggest concerns, the survey respondents were also asked when they thought the current recession will end. Overall, the plurality of affluent consumers (39%) responded `in 2010.' Next year is also the strongest belief of EVERY group regardless of gender, age or household income. Most positive about a 2010 turnaround are the 18-34 year-olds (55% said next year) while the least hopeful were women (30%). Women were also the greatest undecided group with 23% of them saying `I don't know' when the recession will end.

Optimism on the Rise, Especially Among the Wealthiest

On another topic, the future of the US economy, more Affluents were optimistic than pessimistic. Overall, affluent respondents reported stronger positive feelings than negative ones about the economy's future:

• 49% were either `very or somewhat optimistic' while
• 37% were `somewhat or very pessimistic.'

Also EVERY subgroup measured (by age, gender or HHI) reported decidedly optimistic points of view. The most positive group was the wealthiest. Among this group, 63% of those with HHI of $200k+ were upbeat about the future, while only 28% of them were pessimistic.

For more information on this news release, please contact: Richard Vogt Vice President Ipsos Mendelsohn (212) 677-8100 [email protected]

About Ipsos Mendelsohn

Ipsos Mendelsohn, a division of Ipsos MediaCT, focuses on studying and researching the impact and use of media across America. Our syndicated surveys are used by hundreds of advertisers, agencies, and the media to assess communications planning and buying activities. We manage comprehensive and innovative media surveys, including The Mendelsohn Affluent Survey and Ipsos BE:USA.

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