Americans Adapting New Mindset for Funding their Retirement
LOS ANGELES - While the U.S. economy has accelerated in the last year, Americans 55 and older - many of whom saw their retirements stung by the financial crisis - are course-correcting their lifestyle plans, work/leisure expectations and investing strategies, according to a study released today by AIG Life and Retirement in collaboration with Age Wave.
According to the AIG Retirement Re-Set Study, 72% of the survey respondents said the recent economic uncertainty provided a "financial wake-up call." And 80% of those 55 and older said they are now more cautious in their approach to investing. They are far more likely to seek financial peace of mind as a key goal versus potentially higher - but riskier - returns.
"Americans are rightfully concerned about retirement and more careful in their investment strategies," said Jay Wintrob, President and CEO of AIG Life and Retirement. "The 2008 global financial crisis provided a financial wake-up call that people have taken to heart. They are now seeking a safer and more predictable road to retirement, one with less risk and more financial security."
"In a new era of flux and uncertainty, Americans are rebounding from a difficult period and showing their resilience by turning toward greater expense control and more responsible retirement planning," said Ken Dychtwald, CEO of Age Wave. "Lessons learned have not been forgotten. Many people are adapting a new retirement mindset and are choosing to work a bit longer, thereby helping to make retirement more affordable. They are re-setting their sights on a revised, more achievable path to retirement."
The 2012 survey, conducted online within the United States by Harris Interactive among 3,426 respondents aged 55 or older, follows last year's noteworthy study which unearthed a new approach to post-recession retirement strategies. AIG Life and Retirement and Age Wave first partnered in 2001 on a groundbreaking Re-Visioning Retirement Survey.
This year's survey found that more than four times as many people chose saving enough to have "financial peace of mind" (61%) as a top financial priority compared to accumulating as much wealth as possible (14%).
Eight times as many people (32%) plan to look into ways to protect existing assets than those who plan to invest more aggressively to make up for lost time (4%) in response to the recent economic and financial market uncertainty. And 54% expressed concern about their personal financial situation, saying they felt less financially secure than they did a year ago.
"The impact of the most difficult economy in generations has left a lasting impression, with Americans seeing their retirement savings jeopardized by low interest rates and high market volatility," Mr. Wintrob said. "While the stock market and economy have somewhat rebounded, the confidence that many Americans once had has diminished. People are now looking for stable, lower-risk strategies that will provide the income and security they need in retirement."
According to Dr. Dychtwald, "It's notable that protecting themselves and their families from investment surprises is of utmost importance to men and women nearing or in retirement. While there has been a great deal of discussion about the economic impact of the past few years, this survey revealed that the psychological impact was also substantial - and a new mindset is emerging. Today, people are far more likely to recognize the need to scale back some of their retirement expectations while stepping up their saving and responsible financial planning."
"Financial peace of mind is critical for Americans today," Mr. Wintrob said. "We are keenly focused on providing the protection, investment and income solutions needed for financial and retirement security, and I'm confident that the entire financial services industry will play an important role in helping Americans improve their retirement outlook and prepare for tomorrow."
Print This Article
Placer County News HeadlinesKing Fire Arson Suspect ArrestedWayne Allen Huntsman, 37, of Pollock Pines was booked into the El Dorado County Jail for arson on Wednesday.
California Statewide Fire Summary (9.18.14)Today, over 6,600 firefighters continue to battle 10 major wildfires burning in California. Several thousand residents remain evacuated. Yesterday, firefighters fully contained the Black Fire
King Fire Updates: Blaze Rapidly Expands to Over 70,000 AcresEl Dorado County, CA -- The King Fire continues to grow and now has consumed over 70,000 acres with only 5% containment
Roseville California Crime Brief (9.18.14)Police crime brief report for Roseville, California September 18, 2014.
Folsom to File Lawsuit on Mather Airport Master PlanDuring a Special Closed Session meeting yesterday, the Folsom City Council expressed unanimous support to file a lawsuit challenging the recent approval of the Mather Master Plan
Confronting the Islamic StateContrary to the President's assertions last week, the Islamic State IS Islamic and it IS a state - or at least has all the attributes of a state
California Statewide Fire Summary (9.17.14)This morning nearly 6,500 local, federal and CAL FIRE firefighters are on the frontlines of 11 major wildfires burning across California.
Placer County's Most Wanted: Robert Allen Cavin36 year old, Robert Allen Cavin, last known address of Roseville, CA, is currently being sought by authorities for Bringing controlled substance into jail or prison.
Celebrate PlacerGROWN Week October 11- 18The third annual Celebrate PlacerGROWN Week, October 11th through the 18th, will showcase the more than 100 family farms, 20 Placer County Wine Trail wineries and 9 farmers' markets in the Placer County region
Loomis Eggplant Festival Family Fun October 4thEggplants are growing in Loomis in anticipation of the 27th annual festival on Oct. 4 that includes much more than this gourmet purple fruit.
Lake Tahoe Oktoberfest at Camp RichardsonBeers, brats, and music are on tap at Camp Richardson Oct. 4-5, as Oktoberfest returns to the shores of Lake Tahoe. Now in its 20th year the annual event will showcase
California Statewide Fire Summary Over the weekend the state's fire activity increased significantly. The drought dry conditions coupled with high temperatures and low humidity allowed several new large wildfires to grow quickly