Nearly 9 in 10 consumers worldwide have little or no awareness of the retirement products offered by life insurance companies, new research reveals.
Accenture plc, New York, released this finding in a survey of more than 8,000 consumers in 15 countries. The study was conducted to better understand what people think about the retirement crisis and their intentions to make provisions for it.
The research reveals that 62% of consumers have little awareness of the retirement products offered by life insurers and 24% are not aware at all. Just 14% say they have a good awareness.
Among those who have little or no awareness, 45% attribute the reason for their ignorance to the fact that they have never received “simple information on retirement from any life insurer.”
Smaller percentages say that no life insurer has approached them to discuss retirement options (20%) or cannot recall advertising by life insurers about retirement (18%).
The study found that 82% of consumers are worried about their post-retirement finances. And 57% of respondents believe their standard of living will drop when they stop working. Only 30% believe their standard of living will remain unchanged after retirement
Additionally, 71% of consumers are not convinced that government planning will enable them to maintain their current standard of living post-retirement.
When asked to what extent they will need to provide for their own retirement, nearly half of the U.S. respondents (42%) indicate that personal investments will cover more than half of their personal needs. An additional 30% say they are “totally reliant” on their personal assets. And 18% say personal investments must cover less than of their financial needs.
The averages among the 15 countries are 45%, 25% and 23%, respectively.
When asked how they plan to personally address their retirement needs, more than 6 in 10 of the respondents (64%) say they will add to their savings accounts. Smaller percentages note they will invest in a private retirement account (45%), invest in real estate other than their primary residence (30%), buy their home (29%), invest in life insurance (29%) invest in an employer-provided pension plan (27%) and invest stocks and bonds (27%).