DES MOINES, Iowa, Oct. 27, 2020 /PRNewswire/ -- A new study
from F&G, a leading provider of fixed indexed annuities
and life insurance, found that 72% of respondents say the events of
the last six months, including the pandemic, social unrest and
market volatility, have made them less likely to take risks in
general. The finding was part of F&G's inaugural Risk Tolerance
Tracker, a survey of 1,463 adults aged 30 and older exploring how
the events of the last six months have shifted American investors'
views on risk1.
The survey also found a rise in retirement income worries, with
60% of respondents citing concern in this area. These retirement
income concerns spanned generational lines and were especially
pronounced for Gen X respondents aged 40 to 55, of which 67% said
they were very or somewhat worried.
"It's clear that the global pandemic, coupled with financial and
social volatility, has had a significant impact on how American
investors view risk personally and financially," said Chris Blunt, CEO of F&G. "Rising levels of
financial worries among American investors underscore the security
and peace of mind that insurance products can provide through
retirement, yet many American investors are not taking advantage of
them."
COVID Induced Risk Aversion by Gender and Generation
The survey found that recent events have altered how American
investors view risk-taking in their lives and finances – especially
among women and millennials.
Interestingly, risk aversion diverged across gender lines,
especially regarding financial risk. For example, women reported a
more risk-averse approach to investing in comparison to men.
- Two in five women (41%) indicated that they pursue only
cautious/highly conservative investment strategies, in contrast to
only 22% of men.
- In addition, 37% of men said that they have shifted their asset
allocations to be more aggressive during this time, compared with
only 27% of women.
Generational worries about monetary security and losing their
financial safety nets have emerged since COVID-19. For instance,
when asked whether they feel like their financial safety nets have
been taken away as a result of COVID-19, the following percentages
agreed:
- 61% of millennials
- 56% of Gen X
- 44% of baby boomers
One-third of respondents (33%) reported that they were more
likely to explore new types of financial products that they haven't
used before post-COVID-19 than they were prior to the pandemic.
Across generational lines, 52% of millennials, 46% of Gen X
respondents and 17% of baby boomers said that they were more likely
to explore new financial products when asked the same
question.
While each individual's appetite for risk is different, before
embarking on any financial strategies, a financial or insurance
professional can help weigh the pros and cons based on a person and
family's individual circumstances.
"While American investors are feeling financially uncertain amid
the pandemic, their appetite for new financial products has risen,"
said Blunt. "The findings of this survey underscore the importance
of using a financial professional who can help you build a holistic
plan that includes income guarantees like annuities. Unlike any
other financial vehicles, annuities can provide income that you
cannot outlive, yet only 15% of survey respondents cited that
either they or other members of their household currently own
them."
For more information on F&G's Risk Tolerance Tracker, please
visit success.fglife.com/risktolerancetracker.
Survey Methodology
This CARAVAN survey was conducted by ENGINE INSIGHTS among a
sample of 1,463 adults 30 years of age and older. This survey
was live on September 16-23, 2020.
Completed interviews are weighted by five variables: age, sex,
geographic region, race and education to ensure reliable and
accurate representation of the total U.S. population, 18 years of
age and older.
About F&G
F&G is part of the FNF family of companies. F&G is
committed to helping Americans turn their aspirations into reality.
F&G is a leading provider of annuity and life insurance
products and is headquartered in Des
Moines, Iowa. For more information, please visit
www.fglife.com.
Media Contact
Gabrielle Simon
pro-F&G@prosek.com
413.695.3818
1To qualify for the survey, respondents had to have
sole or shared financial decision-making responsibility for their
household and own financial products valued at $10,000 or more.
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SOURCE Fidelity & Guaranty Life