Majority of American Investors Continue to Be Risk Averse,
Worried about Retirement Income and Feel Like Their Financial
Safety Net Has Been Taken Away
DES
MOINES, Iowa, Dec. 5, 2023
/PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG)
("F&G"), a leading provider of insurance solutions serving
retail annuity and life customers and institutional clients, noted
that 85% of American investors1 are worried about
inflation impacting their financial future, up from 79% in 2022,
according to the Company's fourth annual Risk Tolerance Tracker.
The heightened inflation fears come even as the CPI rate fell to
3.3% in October 2023 from 7.7% in
October 2022.
Inflation is just one reason why American investors are nervous,
according to the tracker, which asked American investors how the
events of 2023 have impacted their views on their retirement and
risk. Seventy-eight percent of investors said they are more risk
averse in 2023, which is consistent with 2022 (78%), but up
significantly from 69% in 2021 and 74% in 2020.
In addition, this year's tracker showed a majority of American
investors (60%) continue to feel like their financial safety net
has been taken away from them as a result of the past 12 months. It
also found Americans are worried about retirement income, with 68%
saying they are somewhat or very worried about it in 2023. This is
a similar level from 67% in 2022 but still much higher than 2021
(47%) and 2020 (51%), respectively.
Need For Financial Advice
This year's Risk Tolerance Tracker also revealed that while
American investors expressed a variety of worries related to their
retirement, a majority (61%) are still not speaking to a financial
professional, including more than half of Baby Boomers (55%) and
Generation X (66%).
"Our fourth annual Risk Tolerance Tracker finds that while
American investors are increasingly more distressed about their
financial futures than they were at the height of the pandemic,
many are still not taking action to address their concerns," said
Chris Blunt, President & CEO of
F&G. "Even with these worries, financial advisors continue to
be underutilized. Regardless of what is happening in the world,
financial advisors are a much-needed resource and key relationship
to achieve ongoing financial wellness, sound retirement planning
and a tailored mix of products to suit unique needs and goals."
The Annuity Opportunity
Over two in five investors (42%) said they would be more likely
to explore a new financial product given increased inflation as
compared to 45% in 2022 and up from 36% in 2021. However, despite
having an increasing interest in new products, only 14% of
respondents reported owning an annuity, which can help address many
of the concerns shared around retirement income and feeling
confident in one's financial safety net for the future.
What's Keeping Americans Up At Night
Besides inflation, when it comes to their financial futures,
Americans note they are also worried about the next presidential
election (75%) almost as much as they are about the risk of the US
entering a recession (79%). Other concerns included historically
high global debt (67%) and the impact of generative AI (50%).
Amid Inflation Fears, Americans Look For Extra Cash
The survey also revealed that this period of record inflation
has many looking for ways to supplement their income. In fact, the
tracker found an increasing number of Baby Boomers are open to
other ways to supplement their main source of income (47% compared
to 41% in 2022). A majority of Millennials (66%) and Gen X'ers
(61%) also report being open to ways to secure additional income
given current levels of inflation.
Survey Methodology
This survey was conducted online by Directions Research,
independently recognized as one of the nation's leading business
decision insights firms. The survey was fielded from October 10 to 20, 2023, among a nationally
representative sample of 1,644 U.S. adults 30 years of age and
older who have sole or shared financial decision-making
responsibility for their household, and own financial products
valued at $10,000 or more.
About F&G
F&G is committed to helping Americans turn their aspirations
into reality. F&G is a leading provider of insurance solutions
serving retail annuity and life customers and institutional clients
and is headquartered in Des Moines,
Iowa. For more information, please
visit fglife.com.
1 To qualify for the survey, respondents
had to be age 18+, have sole or shared financial decision-making
responsibility for their household, and own financial products
valued at $10,000 or more.
Media Contact
Gabrielle
Simon
pro-F&G@prosek.com
413.695.3818
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SOURCE F&G Annuities & Life, Inc.
