AXA Equitable Life Insurance Company released results Thursday of a new survey that polled both consumers and economists on topics relating to the economy, market, and retirement planning.
About 1 in 4 consumers believe the economy will continue being unpredictable and little faith that it will improve any time soon. However, over 12 percent of economists felt this way, less than half when compared to consumers.
“It’s no mystery that the recent market downturn has shattered consumer confidence in investing in equities,” said Christopher M. “Kip” Condron, chairman and chief executive officer of AXA Equitable. “This apprehension, combined with a movement to more conservative investments, could place significant pressure on Americans’ retirement plans in the near future.”
Additional key survey results:
– 85% of consumers believe financial products that protect principal of
investments and provide income that increases with inflation are important, as opposed to 67% of economists believing that they are important;
– Economists estimate that 25% of consumers are supporting relatives due to the market downturn while only 16% of consumers have begun to do so;
– More than 8 in 10 of consumers (83%) believe health care costs will rise, compared to 52 percent of economists;
– Nearly 3 in 4 consumers (73%) believe taxes will rise, compared to 55 percent of economists; and
– 34 percent of consumers believe the unemployment rate will rise, as opposed to only 6 percent of economists.
– Having inadequate sources of guaranteed income remains the top concern, with 85 percent of consumers surveyed saying they are worried about it;
– Inflation and protecting principal join guaranteed income as top financial concerns;
– 84 percent of those polled worry, respectively, about investments losing principal and inflation.
– More than four in 10 polled (42%) plan to delay retirement, on average, by six years. Their planned retirement age is now 68, ballooning from a previously planned age of 62;
– Almost three in 10 Americans (27%) plan to go back to work after retiring;
– Approximately two in 10 retirees (17%) have already gone back to work, up from 9 percent of those polled in February 2009.
For more information about the study, www.axa-equitable.com
