Boomers and Older Americans Aware of Retirement Crisis

Allianz Life Insurance Company of North America’s survey of 3,257 U.S. adults ages 44 – 75 found 92% agree there is a retirement crisis in America. Among respondents in their late 40s, 97% agree there is a retirement crisis, while all respondents with lower income levels agree.  

The Allianz Reclaiming the Future Study found that among respondents ages 44 – 54, more than half (51%) say they feel unprepared for retirement, 57% worry that their nest egg will not be large enough in retirement, and 47% are afraid of not being able to cover even their basic living expenses in retirement.  

Between 58% and 60% of all age groups report worrying about longevity. Sixty-one percent of respondents say they are more afraid of outliving their assets than they are of death.  

The study also indicated that the recent market downturn was a wake-up call for many Boomers and older Americans. Forty-six percent say that since the downturn, they’ve decided that protecting the security of their savings is “much more important now.”  

Sixty-nine percent of respondents say they would prefer a retirement savings product that is “guaranteed not to lose value.” Eighty percent would choose a product with a 4% return and a guarantee not to lose value over a product with an 8% return and no guarantee.  

In its Reclaiming the Future Study, Allianz identified five different financial personalities of respondents: 

• Overwhelmed: 32% of respondents said they feel unprepared for retirement. This group expects to have to reduce their living expenses in retirement and they are counting on social security for retirement income. 
• Iconic: 20% of respondents are confident their income will last through retirement. They have reduced some of their spending, and they have a handle on their retirement expenses. 
• Resilient: 27% have planned ahead, and most are planning on investing, working longer, or supplementing social security with some other form of income. 
• Distracted: 7% of respondents have seen their net worth drop significantly but have not changed their retirement plans or reevaluated their overall financial strategy. 
• Savvy: 14% of respondents say they are living comfortably in retirement or will retire comfortably. They have large, diversified portfolios, are comfortable taking risks, and confident their income will last throughout their lives.