Two-Thirds of American Investors Feel Like Their Financial Safety Net Has Been Taken Away, Finds F&G's Annual Risk Tolerance Tracker

Rhea-AI Summary

F&G's annual Risk Tolerance Tracker reveals a significant rise in financial risk aversion among American investors, with 67% feeling their financial safety net has diminished. This represents a stark increase from 47% in 2021. Furthermore, concerns about retirement income surged to 73%, up from 61% last year. Inflation worries are paramount, with 79% of respondents expressing concern. The report suggests that 53% of investors are seeking ways to supplement income, highlighting a shift in investment behavior amidst increasing uncertainty.

Positive

• 53% of investors are looking for ways to supplement their income during inflation.
• 48% are adjusting their retirement plans, indicating proactive financial management.
• 45% are open to exploring new financial products, showing adaptability.

Negative

• 67% of investors feel their financial safety net is diminished.
• 78% report increased financial risk aversion, up from 69% in 2021.
• Concerns about inflation's impact on retirement rising from 73% to 79%.

Risk Aversion and Retirement Income Worries Have Increased Significantly Since 2021

DES MOINES, Iowa, Dec. 8, 2022 /PRNewswire/ -- Over two-thirds of American investors (67%) feel like their financial safety net has been taken away from them as a result of the events of 2022, up drastically from 47% of people who said so one year ago. This is according to the third annual Risk Tolerance Tracker from F&G (NYSE: FG), a leading provider of insurance solutions serving retail annuity and life customers and institutional clients. The tracker asked American investors ^[1] how the events of 2022 have impacted their views on their retirement and risk.

The tracker found a 9-point increase in financial risk aversion among American investors due to the events of 2022, including inflation and increased volatility. The percentage of Americans who said they have become more financially risk averse grew to 78% this year, up from 69% in 2021 and 74% in 2020.

"When we started the Risk Tolerance Tracker in 2020 during the height of the pandemic, respondents understandably indicated they were much more risk averse than before," said Chris Blunt, President & CEO of F&G. "While that slightly improved last year as things returned to normal, our latest survey found that the events of 2022 have pushed American investors to be even more risk averse than they were in the middle of the pandemic with many people saying they feel their retirement safety net has faded away. Things have changed dramatically in just one year."

More American Investors Concerned about Income, Inflation

This year's tracker also found a significant 12-point increase in worries about retirement income among American investors – up to 73% from 61% in 2021 and 60% in 2020.

Among specific concerns, 79% of respondents said they were worried about inflation impacting their retirement, a sentiment that has increased since 2021 when 73% of respondents said the same. 

Changing Behaviors

Among the other findings, this year's Risk Tolerance Tracker revealed that more than half (53%) of American investors say they are more likely to look for ways to supplement their income during this period of increased inflation. This was especially true for younger generations:

• 67% of Millennial respondents
• 62% of Gen X respondents
• 41% of Baby Boomer respondents
• 28% of Silent Generation respondents

Nearly half (48%) of American investors say they are adjusting their retirement plan during this period of heightened inflation and 45% say they are willing to explore new financial products. However, a majority (59%) are still not speaking to a financial advisor who can help them navigate new products and how best to incorporate them into their portfolio.

"While investors continue to become more risk averse, it's encouraging to see many take action, revisiting their retirement plan and becoming more open to new products such as annuities which can provide guaranteed income for life," said Blunt. "During these uncertain times, investors should remember not to panic and that there are a variety of options available to navigate this challenging environment. Working with a financial advisor can help investors prioritize their financial goals and implement a long-term plan to accomplish them."

For more information on F&G's Risk Tolerance Tracker, please visit success.fglife.com/risktolerancetracker.

Survey Methodology

This Xcelerant Survey was conducted online by Directions Research, independently recognized as one of the nation's leading business decision insight firms.  The survey was fielded from October 6 to October 14, 2022, among a demographically balanced nationally representative sample of 1,691 U.S. adults 30 years of age and older who have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.

To ensure consistent and accurate representation of the U.S. general population 18 years of age and older, data are weighted to match the U.S. Census data by the following variables: sex, age, geographic region, race/ethnicity, and education. Weighting factors for each respondent are developed through a custom algorithm.

About F&G

F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.

"F&G" is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

[1] To qualify for the survey, respondents had to be age 30+, have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.

Media Contact

Gabrielle Simon
pro-F&G@prosek.com
413.695.3818

 

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SOURCE Fidelity & Guaranty Life

FAQ

What percentage of American investors feel their financial safety net is diminished according to F&G's Risk Tolerance Tracker?

67% of American investors feel their financial safety net has been diminished.

How much did financial risk aversion increase in 2022 according to F&G?

Financial risk aversion among American investors increased by 9 points in 2022.

What is the current percentage of investors worried about retirement income according to F&G?

73% of investors expressed concerns about retirement income.

What are investors doing to adapt to increased inflation, as reported by F&G?

53% of investors are seeking ways to supplement their income.

When was the F&G Risk Tolerance Tracker survey conducted?

The survey was conducted from October 6 to October 14, 2022.