The Financial Security View of the Benchmarking app evaluates long-term financial preparedness and the ability to sustain one’s lifestyle into the future—especially during retirement or economic changes. This view focuses on wealth accumulation, investment behaviors, and retirement readiness.
Indicators in this view help assess whether households have built sufficient assets and are making strategic financial decisions to ensure lasting economic well-being. As with other views in the framework, insights are grouped into Critical, Supportive, and Contextual Indicators based on their influence on long-term financial security.
Critical Indicators
These indicators are most influential in assessing long-term financial security. They focus on wealth, home equity, retirement savings, and investment participation.
- Median Net WorthHigher net worth indicates greater long-term financial security and ability to maintain lifestyle in retirement.
- Wealth ScoreA comprehensive measure of a household’s financial resources. A higher wealth score suggests greater financial security and ability to weather long-term economic changes.
- Median Home EquityHigher home equity provides a financial cushion and potential source of funds in retirement.
- Retirement AssetsLarger retirement asset balances increase the likelihood of maintaining lifestyle in retirement.
- Propensity to Have SecuritiesMeasures likelihood of owning stocks, bonds, or mutual funds, indicating investment engagement.
- Propensity to Have an IRAReflects preparedness for retirement through tax-advantaged savings.
Supportive Indicators
These indicators provide additional detail around wealth-building activities and investment behaviors that support long-term financial stability.
- Median Home ValueHigher home values can increase overall net worth and provide more options for future financial decisions.
- Securities Value EstimateThe value of investment holdings. Higher securities values contribute to overall wealth and long-term financial security.
- Propensity to Have 529 Savings PlanLikelihood of having a 529 savings plan for education expenses, indicating long-term financial planning.
- Propensity to Have Mutual FundsLikelihood of investing in mutual funds, suggesting diversified investment strategies for financial stability.
- Propensity to Have Any InvestmentsLikelihood of holding investment assets, reflecting financial growth strategies and wealth accumulation.
Contextual Indicators (20% weight)
These provide broader signals of financial planning activity and wealth-building trends that help frame the household’s financial security profile.
- 12-Month Home Value IncreaseTracks home appreciation as a key wealth-building indicator.
- Propensity to Have Acquired or Added to Any Investments in Past 12 MonthsRegular investment activities can indicate ongoing efforts to build and maintain long-term financial security.
- Propensity to Have Met with a Financial PlannerEngagement with a financial planner is associated with better long-term financial outcomes and security.
The Financial Security View helps identify which households are on track for long-term financial success and which may need additional support or education around wealth accumulation, investment, and retirement planning. It is a forward-looking view that captures the extent to which individuals or families are securing their financial futures.
