Jackson Study Reveals Consumers Anxious About Inflation; Financial Professionals Recommend Diversifying
Latest research in Jackson’s Security in Retirement Series reveals consumers have become more pessimistic about their financial security outlook over the past three years
Jackson research shows that a consumer’s perception of a high-inflation environment, coupled with broader economic uncertainty and concerns about
Additional findings from the research include:
- More than half of consumers surveyed were unclear about current rates of inflation. This cohort of consumers reported inaccurate rates or indicated they could not make an estimate of inflation rates. These findings indicate a low level of awareness and a high level of uncertainty among respondents.
- Overall, predictions for future rates of inflation vary among financial professionals and consumers. Research found26% of consumers believe inflation rates will exceed 5% in the next few years, compared to only 8% of financial professionals.
- Diversification ranked highest as a specific method used by financial professionals to fight against inflation risk in their clients’ portfolios. Additionally—in 2023, 42% of the financial professionals surveyed recommended an increased asset allocation to annuities with guarantees, up noticeably from the 32% who did so from the start of 2021 until the end of 2022.
- Consumers whose financial professionals suggested inflationary mitigation strategies lost less of their purchasing power than others. Consumers working with a financial professional lost an average of 2% of their purchasing power over the preceding 12 months due to inflation, while those not working with a financial professional lost twice as much – an average of 4%.
- Pre-retirees surveyed indicated they feel the impacts of inflation more than retirees. Forty-one percent of pre-retirees reported a negative impact from high interest rates on their household finances, while only 29% of retirees reported the same effect.
- The research shows that much of how people feel about inflation and the broader economy relates to where they get their news. Reliance on certain news sources can reflect levels of economic optimism or pessimism based on the bias of the media outlet2.
“Understanding how inflation impacts our economic environment is critical to financial planning, and we’re seeing that, to varying degrees, consumers and financial professionals are either unsure or simply getting it wrong,” said
Jackson’s ongoing work with the
The research, fielded between
Part one of Jackson’s Security in Retirement Series focused on longevity risk, or the risk of outliving income. Future studies will explore and analyze a selection of critical risks impacting Americans’ security in retirement, such as healthcare, market dynamics and policy risk related to government programs.
To access details and up-to-date findings relative to this research as well as other proprietary research materials developed by Jackson on topics that impact the saving and spending habits of Americans, visit www.jackson.com/researchcenter.
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2 Bias determined using Ad Fontes Media, “The Media Bias Chart,” accessed
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515641902/en/
Media Contact:
Patrick.Rich@Jackson.com
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