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Survey Says: Consumers Concerned About Financial Security After the Pandemic

The Indexed Annuity Leadership Council recently surveyed 2,010 adults about how the COVID-19 pandemic affected their opinions of annuities and retirement planning. This week, AIP Marketing Alliance wants to share some of their findings to help you during the annuity sales process with your clients.

Americans have been adversely impacted by the pandemic, and many are worried about their finances.

  • 42% of Americans say the pandemic has made them more risk-averse when it comes to their finances.
  • 40% of Americans say they have had to dip into savings to cover daily expenses since the pandemic began.
  • 15% say they have had to dip into them “a lot.”
  • 61% of people aged 18 to 34 are risk-averse when it comes to their finances.

More people are talking about their finances due to insecurity

At least 35% of Americans have had more conversations about their finances since March 2020, whether with family, friends, or professionals. Of those who have a financial advisor (60%), 31% are having more conversations with them since 2020, and 12% said they are having significantly more. One in four people (24%) who have a financial advisor say they spoke to them because they were worried about their financial insecurity due to the pandemic.

  • 30% of American workers who plan to retire at some point say the pandemic has delayed plans for retirement. This rises to 33% among those planning to retire in the next five years
  • 40% say the pandemic has made them more concerned about planning for retirement
  • 45% say that saving for the future is more of a concern since the pandemic
  • 42% are more worried about running out of money in retirement since the pandemic

More people are deeply concerned about protecting their current savings and finding secure lifetime income for their future

  • 76% of Americans say protecting their retirement nest egg/account from loss is important to them
  • 77% of Americans say it is important that they don’t outlive their income in retirement. Half (50%) say it is very important
  • 54% of Americans say they would consider working part-time to supplement their retirement income; this rises to 69% among those considering retiring in the next five years and 73% among those planning to retire in five years or beyond
  • 86% of Americans who plan to retire say guaranteeing their income in retirement is important

Overall, older Americans (55+) and those who are currently retired have been less impacted by the pandemic. They are less likely to have no savings or dip into existing savings as a result of the pandemic. Three-quarters (76%) of current retirees say they are satisfied with their quality of life in retirement. 72% of American workers who plan to retire at some point say the pandemic has delayed plans for retirement. 42% say the pandemic has made them more concerned about planning for retirement.

Based on the survey statistics, the IALC discusses three main ways to answer your clients’ retirement questions and concerns: educate them on retirement planning; invest in tools to protect their retirement nest eggs; and identify retirement products to generate guaranteed lifetime income streams.

AIP Marketing Alliance agrees as we are contracted with multiple, top-rated carriers who have fixed indexed annuities (FIAs) designed to provide steady, guaranteed lifetime income while protecting their principal from the uncertainty of market volatility. However, 54% of the people surveyed by the IALC have never heard of an FIA.

How can AIPMA help bridge the knowledge gap? Contact our Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com. Our team can generate an illustration using a fixed indexed annuity plus show some retirement calculators to help your client make an educated decision that aligns with their goals. We also can provide you with some sales materials explaining the selected carrier(s) products.

Contact Us

800.783.5206

2041 E. Square Lake Road, Suite 100, Troy, Michigan 48085-3897

About Us

For more than 35 years, AIP Marketing Alliance (AIPMA) serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. Copyright 2021