Financial picture brightens for millennials (but not boomers)

"Using retirement savings to cover an emergency is a permanent setback to retirement planning, with the possibility of taxable distributions, early withdrawal penalties, loss of tax efficiency, and the inability to replace withdrawn funds in future years," says Greg McBride, Bankrate.com's chief financial analyst.

Among the report's additional findings:

• The Bankrate.com Financial Security Index rebounded after sliding the past two months and now stands at 102.6 ­— the best since June.

• Job security is a particular strength: People who feel more secure today than a year ago outnumber those who feel less secure by more than two-to-one.

• Savings is the one major area where Americans note deterioration, with 30 percent saying they feel less comfortable with their savings now compared to one year ago against 18 percent who feel more comfortable.