After Two Years of the Pandemic, Americans Place High Value on Tailored Financial Strategies
Allianz Life study finds better preparation among those working with a financial professional, but opportunity remains for finpros to help with life-stage-specific planning and
Key findings:
- 93% of Americans said setting financial goals and developing a plan to achieve them is important to helping support their future ambitions; 86% cite the benefits of working with a financial professional
- 44% of respondents said making sure they have enough money to last their lifetime is one of the most important things financial professionals can do to help
-
59% of near-retirees say they are planning to work past the current
Social Security retirement age; only 11% of current retirees actually did so
More than nine in 10 respondents (93%) said setting financial goals and developing a plan to achieve them is important to helping them support their future ambitions, with another 86% citing the benefits of working with a financial professional, according to the new 2022 Retirement Risk Readiness Study* from
Accordingly, those who are already working with a financial professional are feeling significantly more prepared to manage a number of potential risks to their retirement, including saving enough, having a plan for retirement income, and addressing the rising cost of living:
|
Working with finpro |
Never had finpro |
Saving enough in a retirement account |
74% |
51% |
Finding a balance between saving for retirement and spending to enjoy life now |
67% |
47% |
Having a plan for taking income in retirement |
65% |
52% |
Having a plan to address the rising cost of living |
60% |
40% |
Diversifying retirement savings to protect a nest egg |
59% |
29% |
Making investments less risky |
57% |
25% |
Researching expenses and risks associated with retirement |
53% |
26% |
Purchasing a financial product that provides a guaranteed source of retirement income |
49% |
15% |
“So many Americans are in a vulnerable spot right now with their finances, it’s encouraging to see the high value placed on not only the practice of financial planning, but also the guidance of a financial professional,” said
Opportunity to help with life-stage-specific planning
The 2022 Retirement Risk Readiness Study surveyed three categories of Americans to get different perspectives on retirement: pre-retirees (those 10 years or more from retirement); near-retirees (those within 10 years of retirement); and those who are already retired.
Regardless of life stage, people want to make sure they have enough money to last their lifetime. Over four in 10 (44%) respondents said making sure they have enough money is one of the most important things financial professionals can do to help. Still, the 2022 study identified several areas where these different groups of Americans are looking for specific assistance based on their proximity to retirement.
Retirees are focused on having their financial professional:
- Maximize investment return: 56% vs. 38% near-retirees and 43% pre-retirees
- Protect investments from market loss: 45% vs. 39% near-retirees and 32% pre-retirees
- Minimize tax burden: 43% vs. 36% near-retirees and 31% pre-retirees
Near-retirees are most interested in getting help with:
-
Maximizing their
Social Security benefit in retirement: 34% vs. 27% pre-retirees and 25% retirees - Making the best decisions about Medicare and health insurance: 30% vs. 23% pre-retirees and 22% retirees
Pre-retirees are more likely than others to want their financial professional’s assistance in:
- Securing their children’s financial future: 35% vs. 23% near-retirees and 13% retirees
- Balancing their budget to save for later while enjoying life now: 33% vs. 25% near-retirees and 26% retirees
- Paying down debt: 27% vs. 19% near-retirees and 16% retirees
Pre-retirees also expect a different level of engagement with their financial professional, in terms of both service and strategy. A higher percentage of pre-retirees expect their finpro to be tech savvy, offering interactive tools to understand finances under a variety of scenarios (58% vs 48% near-retirees and 37% retirees) and being flexible with meeting options, including virtual meetings, to meet their needs (50% vs 43% near-retirees and 48% retirees). In addition, more pre-retirees are interested in exploring a non-traditional life path where they may try different things at different times instead of following the traditional school-work-retirement path (54% vs. 48% near-retirees and 36% retirees).
One area where many Americans continue to struggle is with their
About six in ten (59%) near-retirees say they are planning to work past the current
These misconceptions extend to expectations about the role
“Miscalculating how much you can depend on
*Allianz Life conducted an online survey, the 2022 Retirement Risk Readiness Study, in
This content is for general educational purposes only. It is not, however, intended to provide fiduciary, tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20220621005094/en/
jeff.faust@allianzlife.com
(612) 670-8971
@AllianzLife
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