Global Atlantic’s Allocation Conversation Study: Retirement Age Investors Seek Investment Protection; Concerned About Volatility, Recession and Interest Rates
June 27 2023 - 7:30AM
Business Wire
A new study from Global Atlantic Financial Group reveals that
two-thirds (64%) of investors near or in retirement say protecting
assets is more important than growing assets, and 92% are concerned
about volatility, recession or high interest rates.
The survey of retirement age investors (ages 55 to 75) working
with financial professionals and with investable assets between
$250,000 and $1 million found that three in five (59%) experienced
a decrease in their portfolio values in 2022, and of those, nearly
half (48%) experienced a decline greater than 10 percent. These
portfolio declines led to conversations about more conservative
asset allocation, as 70% of investors reported having discussions
with their financial professionals about putting a portion of their
portfolio into a product that protects and limits the downside risk
of investments while still providing upside potential.
“These survey findings illustrate that those facing retirement
or in retirement greatly value financial strategies that may
protect their income,” said Paula Nelson, head of strategic growth
for Individual Markets at Global Atlantic. “With emotions running
high coming out of 2022, it’s important that financial
professionals have discussions with their clients about asset
protection, particularly as we continue to experience periods of
uncertainty in the markets.”
While just over half (54%) of respondents are optimistic about
2023 investment performance, most (89%) are still concerned about
inflation, and respondents said their top financial priority is
creating or utilizing a retirement income plan that may provide
lifetime income. Having said that, only half believe they are
adequately protected from a market downturn.
“Nearly nine in 10 of those in our survey said protecting
investments to limit downside risk is important, but only half
actually believe they are positioned for that protection,” added
Ms. Nelson. “This is a clear indication that investors and their
advisors may need to re-examine allocations to make sure they have
a source of stability included in their portfolios.”
Please visit Global Atlantic’s web page for additional resources
on how to protect retirement savings from market instability.
Financial professionals can also visit Global Atlantic’s financial
professional website to learn more.
About Global Atlantic
Global Atlantic Financial Group is a leader in the U.S. life
insurance and annuity industry, serving the needs of individuals
and institutions. With differentiated investment and risk
management capabilities, deep client relationships, and a strong
financial foundation, the company has established a track record of
delivering proven, value-added solutions and long-term growth.
Global Atlantic is a majority-owned subsidiary of KKR, a leading
global investment firm that offers alternative asset management
across multiple strategies and capital markets solutions. KKR’s
parent company is KKR & Co. Inc. (NYSE: KKR). Global Atlantic
Financial Group (Global Atlantic) is the marketing name for The
Global Atlantic Financial Group LLC and its subsidiaries.
About the Survey Methodology:
The nationwide survey was conducted online by Artemis Strategy
Group from April 6 to April 17, 2023 among 1,001 investors with
$250K to $1M in investable assets, ages 55 to 75 who work with a
financial professional. Data is weighted on region and by age group
on gender, race/ethnicity, assets, and education to reflect the
population ages 55 to 75 with $250,000 to $999,999 in savings or
investments based on the Federal Reserve 2021 Survey of Household
Economics and Decisionmaking (SHED)
Global Atlantic Financial Group (Global Atlantic) is the
marketing name for The Global Atlantic Financial Group LLC and its
subsidiaries, including Forethought Life Insurance Company and
Accordia Life and Annuity Company. Each subsidiary is responsible
for its own financial and contractual obligations. These
subsidiaries are not authorized to do business in New York.
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ICR Inc. GlobalAtlantic@icrinc.com (203) 682-8268
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