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Affluent U.S. Pre-Retirees Report Greater Resilience to Market Turmoil

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The latest research among affluent individuals purchasing diversified insurance and investment products for their retirement shows that the share “in market” to make a near-term change with their investment advisor(s) or portfolio strategy has dropped from 73% in November 2009 to 43% this past spring.

Phoenix Marketing International recently announced the findings from its latest study among pre-retirement investors age 35 to 64 with household income and investable assets of at least $100K.

Conducted earlier this year, the Phoenix study shows that affluent pre-retirees now report greater stability with their investment situation than was measured just two years ago.

“Our historical data indicate much greater resilience to market turmoil than we observed in the fall of 2009,” stated Kristina Terzieva, who is the program director for this unique financial services study.

More than 4,800 individual investors have responded to the semi-annual Phoenix study since May 2009 and those indicating a near-term replacement of their financial advisor(s) or the closure of an investment account(s) are at the lowest levels recorded in more than two years. 

Among affluent pre-retirees planning to make a change in the next month, meeting with their financial advisor or finding out more about retirement products and services or making a change with their investment strategy are the most frequently anticipated activities.

Lowest on the “to do” list are changing their financial advisor(s) or closing an investment account, but not terminating the brand relationship. “One area in which we have noticed little historical change among affluent pre-retirees is with their preferred approach toward making retirement decisions.

One-third currently view themselves as self-directed investors, another one-third use financial advisors for specialized needs, one-fourth regularly consult an advisor, and the remaining ten percent or so rely on their advisor to make most retirement planning decisions,” added Terzieva. 

The Phoenix study polls affluent investors about their impression and consideration of numerous financial services companies offering diversified insurance and investment products.

A list of brands tracked since May 2008 that promote retirement-related insurance products includes Aetna, AIG, CNA, Genworth Financial, Guardian, Jackson National, John Hancock, MassMutual, MetLife, Nationwide, New England Financial, Northwestern Mutual, NY Life, Pacific Life, Prudential, State Farm, Sun Life, The Hartford, The Principal, Transamerica, and USAA. 

Also covered by the Phoenix study are leading brokerage and investment managers such as AIM/Invesco, AllianceBernstein, Allianz, American Century, American Funds, Ameriprise, AXA Equitable, Fidelity, Charles Schwab, Columbia Management, Commonwealth Financial, E*Trade, Edward Jones, Franklin Templeton, Goldman Sachs, Janus, Lincoln Financial, Lord Abbett, TD Ameritrade, TIAA-Cref, Merrill Lynch, Morgan Stanley, PIMCO, Pioneer, Putnam, Oppenheimer, Pioneer Investments, Raymond James, T.Rowe Price, US Trust, Vanguard, and Wells Fargo. 

The second 2011 study among affluent pre-retirees will soon be administered; there is still time for brands offering diversified insurance and investment products to participate, and results will be available in January 2012.