Forty-nine percent of retirees said they felt less secure than when they first entered retirement, compared with 20 percent who said so last year. The findings come from a survey of retirees aged 56 to 77 with $100,000 or more in investable household assets, conducted by LIMRA, the Society of Actuaries (SOA) and the International Foundation for Retirement Education (InFRE).
The organizations released the findings recently in a report entitled “What a Difference a Year Makes,” highlighting changes in retirees’ attitudes from 2008 to 2009. (LIMRA is a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness.)
Forty-three percent of the retirees surveyed said their tolerance for investment risk has gone down since last year, and many were concerned about the possibility of inflation.
The retirees whose investment risk tolerance declined in the past year gave the following main reasons:
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* Concern about the economy, 79 percent of respondents
* Concern about future inflation, 45 percent of respondents
* Not enough time to recover from the economic downturn, 39 percent of respondents