Boomers are still more interested in guarantees than in high returns, a survey released Thursday by Allianz found.
When asked to decide between a financial product that promises a 4% return and is guaranteed not to lose value and one with an 8% return that is subject to market risk and loss of principal, 76% of respondents chose the guaranteed product.
“Despite a significant rebound in the equity markets since the financial crisis, this new study confirms that a ‘new normal’ mindset has dug deep roots in the minds of boomers,” Gary C. Bhojwani, president and CEO of Allianz, said in a press release. “With the vast majority still in favor of more security for their savings, boomers tell us they are not interested in going back to return-chasing behaviors.”
That “new normal” is defined by expectations of a sluggish economy, low investment returns, a more conservative investing strategy, expectations of delaying retirement and an increasing interest in seeking help from financial professionals, the survey found. More than one-third said they feel “totally unprepared” for retirement and 38% have “no idea if their income will last throughout their lifetime.” The average age of expected retirement is 66.