hero easing client concerns

Easing client concerns about market risks outside their control

More people are worried about a big market crash or major recession than any time in the last year.

Most people are pessimistic about the economy right now.

The latest Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America (Allianz Life)1 found that less than half (47%) of Americans think the economy will improve in the next year. This was down from 54% in the last quarter of 2021 and 66% at the end of 2020.

What’s taking away the optimism? The vast majority of people in survey said they are worried that current world tensions will cause a recession (79%) and expect volatility to continue in the market this year (81%).

In particular, respondents were worried about how the risks of volatility would affect their retirement savings. Anxiety about the risks of volatility on retirement savings is higher than it has been in a year. 40% of respondents said volatility in the market is making them anxious about their nest egg.

More than four in 10 respondents (43%) said they are too nervous to invest in the market right now. This is the highest level of worry since 2019, and that mindset could lead to risk-averse behaviors that could put clients behind in the end.

Preference for protection

There are ways that a financial professional can help ease these concerns with thoughtful strategies. Americans signaled in the survey that they are looking to protect some of their retirement savings from market risks.

65%

said given recent market volatility, they wish they had more of their retirement savings protected from market loss

59%

said they are looking to add more protection to their portfolio after the recent market correction

66%

said they wish they could have locked in their gains during recent market highs

Financial professionals can help clients who fear market risks outside their control feel like they are in charge of their finances. Strategies like investing in an annuity that can offer a level of protection or diversifying their portfolio could help mitigate the risks to retirement savings.

For your clients, just knowing that they are deploying strategies to lessen their exposure to risk could help reduce their financial anxiety.

1 Allianz Life conducted an online survey, the 2022 1Q Quarterly Market Perceptions Study in March 2022 with a nationally representative sample of 1,002 respondents age 18+.

Diversification does not ensure a profit or protect against loss.

Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

Products are issued by Allianz Life Insurance Company of North America. Registered index-linked annuities (RILAs) are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com