A new report reveals a greater aversion to risk among boomer-age investors.
Released by AIG Life and Retirement and Age Wave and conducted by Harris Interactive, the 2012 online survey reveals that nearly three quarters (72 percent) of 3,426 individuals ages 55 polled say the recent economic uncertainty provided a “financial wake-up call.”
Eight in ten (80 percent) of those 55 and older say they are now more cautious in their approach to investing: They are more likely to seek financial peace of mind as a goal versus potentially higher, but riskier, returns.
The surveys finds that more than four times as many people choose saving enough to have “financial peace of mind” (61 percent) as a top financial priority compared to accumulating as much wealth as possible (14 percent).
The survey also notes that eight times as many people plan to look into ways to protect existing assets than those who plan to invest more aggressively to make up for lost time (4 percent) in response to the recent economic and financial market uncertainty.
Additional, 54 percent express concern about their personal financial situation, saying they feel less financially secure than they did a year ago.
“The impact of the most difficult economy in generations has left a lasting impression, with Americans seeing their retirement savings jeopardized by low interest rates and high market volatility,” says AIG Life and Retirement President and CEO Jay Wintrob in a prepared statement. “While the stock market and economy have somewhat rebounded, the confidence that many Americans once had has diminished.
“People are now looking for stable, lower-risk strategies that will provide the income and security they need in retirement,” he adds.