Global Atlantic 2024 Retirement Outlook Survey

Retirement Age Investors Value Asset Protection Over Growth

While U.S. markets rebounded in 2023, retirement age investors are still prioritizing strategies for generating reliable retirement income and protecting their nest eggs against volatility, according to the Global Atlantic 2024 Retirement Outlook Survey, a new study from Global Atlantic Financial Group (“Global Atlantic”). Nearly two-thirds (61%) of respondents would rather protect their assets than try to grow them, but only half (54%) believe they are adequately protected from a market downturn.

The December 2023 study surveyed retirement age investors (ages 55 to 75) who work with financial professionals and have investable assets between $250,000 and $1 million. It revealed investors rate investments that provide stability, protection, a steady income stream, and guaranteed retirement income over investments that come with more risk.

The study suggests that scars from the 2022 downturn, when the S&P 500 sank more than 18%, are still fresh for many, and investors remain focused on strategies for generating reliable retirement income and protecting their savings against volatility.

A full 65% of survey respondents cited "creating a retirement income plan that provides income for as long as I live" as one of their top two financial priorities and nearly half (48%) ranked "protecting assets from loss" as one of their top two primary investing goals, even with the S&P 500 gaining in 2023.

Eight in 10 investors (81%) said protecting investments while they grow by limiting downside risk is important, and two-thirds (69%) said their financial professional has offered strategies to insulate from investment losses. The study found that nearly half (47%) of respondents had discussed annuities with their financial professional in the past year. Of those that did, 30% purchased a new annuity, while almost 22% allocated more to an existing annuity.

“Asset allocation is a core component of any conversation financial professionals have with their clients,” said Paula Nelson, Head of Strategic Growth for Individual Markets at Global Atlantic. “But we believe these conversations should expand beyond a typical stock and bond allocation and include a broader range of products and strategies, such as annuities and the numerous other ways to diversify client portfolios.”

According to the study, financial professionals are proving adept at guiding clients through challenging environments. The study revealed an 84% satisfaction rate with financial professionals in 2023, as investors lean heavily on professional advice to navigate lingering economic crosscurrents.