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Addressing anxiety and mitigating risk as clients navigate the economic impact of the pandemic

The pandemic has many concerned over finances and retiring earlier than expected.

69%

of Americans* believe the COVID-19 pandemic will have a greater overall economic impact than the Great Recession

As Americans continue to grapple with many aspects of COVID-19, the vast majority believe the pandemic’s impact will be more significant than the Great Recession for both the economy and their own finances, according to the recent results of our 2021 Retirement Risk Readiness Study.

Unexpected early retirement continues to put Americans at financial risk.

68%

of retirees say they retired earlier than expected – with the majority doing so for reasons beyond their control

More than two-thirds of respondents said they retired earlier than expected, up significantly from the 50% who acknowledged earlier-than-expected retirement in last year’s study. Similar to 2020, the majority said they had to do so for reasons outside of their control, including healthcare and unexpected job loss. Early retirement also means a longer retirement, which requires careful planning for the impact of things like inflation and healthcare.

The pandemic is adding greater risk to a generation of Americans who were already struggling to save and plan for retirement, with 43% saying they are unable to put away money for retirement (up 37% from 2020) and a similar amount (42%) feeling they are already too far behind on retirement goals to catch up.

Pandemic silver linings for retirement planning – where a financial professional can make an impact.

65%

of Americans say they’re now paying more attention to their saving and spending

Despite obvious financial strain caused by the pandemic, nearly two-thirds (65%) of survey respondents said that they are paying more attention to what they are saving and spending, and near-retirees are more active in pursuing a variety of strategies including:

  • Saving enough in a retirement account
  • Diversifying their retirement savings
  • Researching expenses and risks associated with retirement
  • Making a formal plan with a financial professional
  • Purchasing a product that provides a guaranteed source of income

The global pandemic has people taking a more proactive approach to managing risks that may come in retirement. During this time, financial professionals can help clients with strategies to add more risk management measures into their retirement planning and overall portfolio, such as products that offer guaranteed retirement income.  

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Ready for the next step?

To help your clients develop flexible retirement strategies that are efficient and stable, consider talking with them about the Value of Income Planning®.

* The Allianz Life Retirement Risk Readiness Study was conducted by Allianz Life via an online survey in December 2020. The nationally representative sample included 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k.