The general urgency which underscores the need for Americans to adequately prepare for retirement appears to be accelerating, showing that more Americans both recognize the need to prepare and protect against uncertainty, while also becoming more motivated to plan for the future. This is according to a new survey from American financial and insurance corporation AIG.
“Moving Forward, a study from AIG Life & Retirement, finds that many people see an increased value in financial planning, income protection and insurance, and the benefit of working with a financial professional in planning for a more secure financial future,” the survey says.
The survey — which solicited the responses of 1,000 Americans between the ages of 22 and 76 with household incomes of $40,000 or higher — aimed to understand how major international occurrences like the COVID-19 coronavirus pandemic have impacted multiple generations of Americans on the front of retirement preparedness.
“Despite recent challenges, many people are looking forward with hope about the future, including their financial well-being,” the results describe. “Overall, Americans are saving more, paying down debt and looking to improve their retirement outlook. Yet, in looking more deeply at life phase and gender, there are noted differences in attitudes, behaviors and priorities, highlighting opportunities to engage and educate Americans based on specific needs.”
The generational divide is most stark when looking at the outlook for life in retirement. In the survey, millennials were more likely to view retirement with optimism than either Generation X or baby boomers, with 45% of millennials responding with a “more positive outlook” on the prospect of life beyond their careers. Gen X and baby boomers each responded at 26% and 13%, respectively, to the same question.
There is also a greater opportunity for financial professionals to connect with Americans to discuss financial futures, the results indicate.
“With only slightly more than a third (36%) currently working with a financial professional, there is a clear opportunity for financial professionals to connect with more clients by offering education, guidance and solutions that can help protect against uncertainties and provide protected income for life in retirement,” the results say.
Find the full survey results at AIG.