Global Atlantic’s Allocation Conversation Study: Retirement Age Investors Seek Investment Protection; Concerned About Volatility, Recession and Interest Rates

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06/27/2023 - 07:30 AM

NEW YORK--(BUSINESS WIRE)-- A new study from Global Atlantic Financial Group reveals that two-thirds (64%) of investors near or in retirement say protecting assets is more important than growing assets, and 92% are concerned about volatility, recession or high interest rates.

The survey of retirement age investors (ages 55 to 75) working with financial professionals and with investable assets between $250,000 and $1 million found that three in five (59%) experienced a decrease in their portfolio values in 2022, and of those, nearly half (48%) experienced a decline greater than 10 percent. These portfolio declines led to conversations about more conservative asset allocation, as 70% of investors reported having discussions with their financial professionals about putting a portion of their portfolio into a product that protects and limits the downside risk of investments while still providing upside potential.

“These survey findings illustrate that those facing retirement or in retirement greatly value financial strategies that may protect their income,” said Paula Nelson, head of strategic growth for Individual Markets at Global Atlantic. “With emotions running high coming out of 2022, it’s important that financial professionals have discussions with their clients about asset protection, particularly as we continue to experience periods of uncertainty in the markets.”

While just over half (54%) of respondents are optimistic about 2023 investment performance, most (89%) are still concerned about inflation, and respondents said their top financial priority is creating or utilizing a retirement income plan that may provide lifetime income. Having said that, only half believe they are adequately protected from a market downturn.

“Nearly nine in 10 of those in our survey said protecting investments to limit downside risk is important, but only half actually believe they are positioned for that protection,” added Ms. Nelson. “This is a clear indication that investors and their advisors may need to re-examine allocations to make sure they have a source of stability included in their portfolios.”

Please visit Global Atlantic’s web page for additional resources on how to protect retirement savings from market instability. Financial professionals can also visit Global Atlantic’s financial professional website to learn more.

About Global Atlantic

Global Atlantic Financial Group is a leader in the U.S. life insurance and annuity industry, serving the needs of individuals and institutions. With differentiated investment and risk management capabilities, deep client relationships, and a strong financial foundation, the company has established a track record of delivering proven, value-added solutions and long-term growth. Global Atlantic is a majority-owned subsidiary of KKR, a leading global investment firm that offers alternative asset management across multiple strategies and capital markets solutions. KKR’s parent company is KKR & Co. Inc. (NYSE: KKR). Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries.

About the Survey Methodology:

The nationwide survey was conducted online by Artemis Strategy Group from April 6 to April 17, 2023 among 1,001 investors with $250K to $1M in investable assets, ages 55 to 75 who work with a financial professional. Data is weighted on region and by age group on gender, race/ethnicity, assets, and education to reflect the population ages 55 to 75 with $250,000 to $999,999 in savings or investments based on the Federal Reserve 2021 Survey of Household Economics and Decisionmaking (SHED)

Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York.