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New Survey Finds Individuals Need Even Extra Assured Revenue in Retirement

Concern over financial volatility tops the record of issues for retirement financial savings, based on a brand new joint ballot from Kiplinger and Athene

WASHINGTON, Sept. 8, 2022 /PRNewswire/ — Current volatility within the markets has altered Individuals’ perceptions round what it means to have a safe retirement, as three-fourths of respondents say they want extra assured revenue in retirement than they have already got or anticipate to have, based on a brand new nationwide ballot of retirees and near-retirees by Kiplinger’s Private Finance journal and main retirement options firm Athene. Curiously, extra pre-retirees specific this want than present retirees do (82% vs 69%).

The survey, fielded by Qualtrics, discovered fears a few potential recession and uncertainty over the monetary power of Social Safety are respondents’ high two monetary issues proper now, with virtually three-fourths (74%) saying they’re anxious in regards to the impression of every on their retirement. The rising value of well being care (72%) and inflation (71%) intently observe as different high threats cited within the survey.

A majority of respondents (57%) say that having extra assured revenue in retirement would particularly ease their issues about operating out of cash. Greater than a 3rd (34%) say having extra would ease issues over market volatility.  

“Retirees with sufficient assured revenue to pay their mounted bills can keep absolutely invested within the inventory market throughout a downturn,” says Kiplinger journal editor Mark Solheim. “And that can provide their investments a possibility to rebound as soon as the market picks up once more.”  

So how a lot assured revenue is not sufficient, based on the ballot respondents?

  • Of these already amassing Social Safety, greater than three-fourths (76%) say it supplies 20% or extra of their revenue in retirement; 43% say it supplies 50% or extra.
  • Of those that have a pension, virtually two-thirds (63%) say it supplies or might present 20% or extra of their revenue in retirement; 28% say 50% or extra.
  • Of those that have an annuity, greater than a 3rd (34%) say it supplies or might present 20% or extra of their revenue in retirement; however solely 7% say 50% or extra.

The ballot additionally exhibits how annuities may also help folks really feel safer, with the monetary freedom to take pleasure in life extra in retirement.

Respondents with out any sort of annuity report the next degree of concern throughout a number of measures than respondents with an annuity do:

  • Whereas 62% of respondents with out an annuity are assured they are going to have sufficient retirement revenue to dwell comfortably, 74% of respondents with an annuity really feel that manner.
  • Respondents with out an annuity specific larger ranges of concern in regards to the impression of inflation on their retirement financial savings than these with an annuity do (72% vs 66%). They’re additionally much more more likely to have already in the reduction of on spending due to inflation (74% vs 63%).
  • And they’re considerably extra anxious in regards to the following long-term threats to their retirement:
  •  
    • Recession (75% vs 71%)
    • Monetary power of Social Safety (75% vs 69%)
    • Potential value of long-term care (69% vs 64%)

What’s extra, amongst respondents who’re already retired, these with annuity revenue report being extra glad with their lives than these with out an annuity. This is how the 2 teams responded when requested in the event that they agree with the next statements:

  • I spend my time doing issues I take pleasure in (88% vs 78%)
  • I am as busy as I need to be (87% vs 75%)
  • I have the funds for to purchase the issues I want (86% vs 75%)
  • I’m having fun with life (85% vs 78%)
  • I have the funds for to splurge on issues I would like (59% vs 50%).

“It is no shock {that a} majority of survey respondents are anxious given the volatility we have seen in fairness and bond markets this yr and are searching for methods to guard their retirement financial savings,” says Grant Kvalheim, President of Athene and Chief Government Officer and President of Athene USA. “Individuals need to really feel safe to allow them to take pleasure in their retirement—and an annuity may also help them do this.”

The ballot was performed by Qualtrics from June 21-24, 2022, with 818 respondents ages 50 or older. Outcomes have a +/- 3.4% margin of error and a 95% confidence degree. Extra survey outcomes have been revealed on Kiplinger.com. 

Methodology

Survey fielded June 21-24, 2022, by Qualtrics leading to 818 respondents ages 50 or older, roughly cut up between absolutely or partially retired and never retired; additionally, roughly cut up between women and men. Respondents with lower than $100,000 in family web price (excluding a major residence) weren’t included within the survey. Responses could exceed 100% resulting from rounding or allowance of a number of responses. Margin of error 3.4% with a 95% confidence degree.

About Kiplinger 

For greater than 100 years, the Kiplinger group has led the best way in private finance and enterprise forecasting. Based in 1920 by W.M. Kiplinger, the corporate developed one of many nation’s first profitable newsletters in fashionable instances. The Kiplinger Letter, launched in 1923, stays the longest repeatedly revealed publication in the USA. In 1947, Kiplinger created the nation’s first private finance journal. In the present day, Kiplinger is a part of Future PLC, a world media group and main digital writer. Change into a fan of Kiplinger on Fb or Kiplinger.com and observe Kiplinger on Twitter and LinkedIn.

About Athene 

Athene, by means of its subsidiaries, is a number one retirement companies firm with complete property of $232.3 billion as of June 30, 2022, and operations in the USA, Bermuda, and Canada. Athene makes a speciality of serving to its clients obtain monetary safety and is a options supplier to establishments. Based in 2009, Athene is Pushed to Do Extra for our policyholders, enterprise companions, shareholders, and the communities wherein we work and dwell. For extra info, please go to www.athene.com.

Contacts

Alissa Neil                                                      
For Kiplinger’s Private Finance                               
[email protected]
(917) 328-4889              

Kelly Woerdehoff
AVP Company Communications for Athene
(515) 342-5144
[email protected]

SOURCE Kiplinger’s Private Finance

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