In our recently conducted Allianz Chasing Retirement Study, we discovered a significant subset of Americans age 45-65 who feel that they need to catch up on their retirement savings and need help understanding potential solutions to close their savings gap.
The good news is that these “Chasers” are part of 90% of active retirement savers who believe that accumulating savings is an important factor in their ability to enjoy their future retirement. Enter the need for a financial professional who can work with them on a financial solution that can address their retirement gap and help to calm their anxiety over feeling behind in their goals.
Here are some things for you to consider:
- Chasers are likely to need a financial professional. Only 39% of Chasers are currently working with a financial professional compared to more than half (53%) of their counterparts.
- Provide education on financial products. Despite having a mean retirement portfolio of more than $400,000, Chasers struggle to keep up with their retirement savings goals. Additionally, they tend to own fewer financial products. Only 53% have an IRA and even fewer have a pension (37%) or own individual stocks (35%), mutual funds (35%), or an annuity (14%).
Thus, financial professionals have an opportunity to talk with Chasers about options available to them that might help to accelerate their savings even later in life.
If you’re appointed with Allianz, log in to download our Retirement income planning worksheet to start this conversation with current or potential Chaser clients.
- Consider offering products that offer growth and protection. Chasers are not very interested in taking on more investment risk in order to accumulate funds. Instead, 84% say they are interested in a financial product that offers growth potential with some protection from loss, with 71% saying they are willing to trade off some upside growth in order to have some protection from loss.
Chasers may feel overwhelmed and that catching up is unrealistic. However, a proactive and understanding financial professional can help them to take more control over their portfolio and develop a solution to help them catch up and feel more confident in their financial future.
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Allianz Life Insurance Company of North America conducted an online survey, the Chasing Retirement Study, in April 2018 with a nationally representative sample of 1,007 respondents ages 45-65 with a minimum household income of $100,000 if married or $75,000 if single, who own at least one financial product and have some retirement savings. The study included an oversample of 102 Chasers for a total of 1,109 completed surveys.