Americans in the ‘Middle Market’ Want Financial Products That Ease Worries about Inflation, Taxes, and Savings

People who already own a cash value life insurance policy are less likely to be worried about almost all retirement financial concerns.

MINNEAPOLIS – Jan. 10, 2023 While Americans worry about the rising cost of living, not saving enough, and taxes, those in the “middle market” who own cash value life insurance are less likely to be worried about these financial concerns, according to the latest study* from Allianz Life Insurance Company of North America (Allianz Life).

The 2022 Allianz Middle Market Study focused on people age 25 to 45 who are contributing to their 401(k) plan to the full company match and have additional funds that could be put into another financial vehicle. About half of respondents (53%) currently work with a financial professional.

While these Americans are financially stable, they are concerned about potential risks to their retirement. The most common financial worries for retirement among respondents were the rising cost of living, not having enough saved, and taxes:

  • 59% worry the rising cost of living/inflation will prevent them from enjoying retirement
  • 52% worry about not having enough saved to have the life they envision in retirement
  • 49% are concerned about keeping their tax bill as low as possible in retirement

“These people are in the first half of their careers and actively saving for retirement but, like many of us, are still concerned about their future financial security,” said Jason Wellman, Senior Vice President, Life Insurance Distribution, Allianz Life. “They are worried about some of the important risks that can derail a retirement strategy – particularly those that are top of mind right now like inflation and taxes.”

Consumers are interested in learning about products that could ease these financial concerns, like Fixed Index Universal Life Insurance (FIUL), a type of cash value life insurance policy. More than half of all respondents said they were interested in learning more about products that could ease worries due to rising cost of living.

Respondents who already own a cash value life insurance policy are less likely to be worried about almost all retirement financial concerns. For example, fewer respondents that currently own a life insurance policy worry about inaccessible savings.

  • 41% of respondents without life insurance worry about having too much of their savings being inaccessible for use in emergencies, compared to 33% with life insurance
  • 50% of respondents without life insurance worry about finding financial products that provide access to funds, while allowing money to accumulate, compared to 41% with life insurance.

Yet, many consumers do not have cash value life insurance. Respondents said the top reasons for not having cash value life insurance are it’s too expensive, it’s too confusing, and there are too many types of insurance.

Respondents also identified critical concerns that could be addressed with an FIUL policy. They want multiple sources of retirement income (88%), access to funds in case of an emergency (81%), ability to protect money from risks of market volatility (84%), and the ability to manage inflation impacts on retirement savings (84%).

“While a number of these Americans have done work protecting themselves from retirement risks and setting themselves up for success, a cash value life insurance policy, like FIUL, could be an important part of their financial strategy,” Wellman said. “There seems to be a lack of knowledge of just how much a policy can address some of these top concerns. This is an opportunity for financial professionals to start new client relationships that can build as the middle-market ages, for referrals, increased revenue, and new life insurance sales.”

* The 2022 Allianz Middle Market Study was conducted by Allianz Life as an online survey in August 2022 with 800 respondents, ages 25-40 years. Respondents have an annual household income of $100,000+ and either 1) contribute $20,500 or more to retirement investment accounts, or 2) meet or exceed their employee sponsored match and is making/interested in making additional contributions to another account.

Products are issued by Allianz Life Insurance Company of North America.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

This notice does not apply in the state of New York.

About Allianz Company Profile

Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with approximately 157,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.