What You Need to Know
- These Americans would welcome such a conversation despite their initial reluctance, an Allianz Life survey has found.
- Top concerns include rising health care costs, the cost of living, and running out of money before they die.
- The study found an opportunity for financial professionals to help working clients and retirees with such concerns.
Two-thirds of Americans are not discussing concerns about their finances and retirement savings with their financial advisor, but would welcome such a conversation, according to survey results released in late June by Allianz Life.
The finding presents financial professionals with an opportunity to help clients who are in the workforce and those already in retirement address retirement risks.
Seventy-one percent of respondents expressed concerns about health care costs, up from 65% in 2020, 67% about the rising cost of living vs. 59%, 66% the effect of a market downturn on retirement savings vs. 54% and 59% running out of money before they die, up from 56%.
Issues that two-thirds of study participants said they are most interested in getting professional guidance on, but have not discussed with their advisor, are running out of money before they die, how a market downturn will affect their savings and being too conservative in investments and missing out on market gains.
More than half said they would like to discuss concerns about high health care costs, the rising cost of living and lack of funds to do all the things they want to do in retirement.
“It’s no secret that Americans are uncomfortable discussing financial topics, but it’s troubling that this reluctance extends to conversations with their own financial professionals,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement.
“If they don’t feel comfortable addressing these concerns with the very people who are there to help plan for the future, it’s unlikely they’ll take any action to address the various risks that could jeopardize their retirement, and that needs to change.”
Allianz Life conducted an online survey in the U.S. in December with a nationally representative sample of 1,000 people 25 and older who had an annual household income of at least $50,000 if single or $75,000 or more if married or partnered, or had investable assets of $150,000.