F&G Finds Nearly Three in Four American Investors Steering Clear of Financial Risks Since COVID-19
A new study from F&G found that 72% of respondents say the events of the last six months, including the pandemic, social unrest and market volatility, have made them less likely to take risks in general. The finding was part of F&G’s inaugural Risk Tolerance Tracker, a survey of approximately 1,500 American investors1 exploring how the events of the last six months have shifted their investor risk.
60% worried about retirement income stemming from the past six months of the pandemic, social unrest and market volatility
This is especially pronounced for Gen X with 67% worried about retirement income
Seeking Safety or Taking Risk?
41% of women have pursued only cautious/highly conservative investment strategies compared to 22% of men
37% of men have shifted their asset allocations to be more aggressive during this time compared with only 27% of women
American investors feel like their financial safety net has been taken away
A generational breakdown:
Ways to Take Control and Shift Risk
weigh the pros and cons
Each individual’s appetite for risk is different-weighing the pros and cons of any strategy is important
build a holistic plan
Understand the importance of using a financial professional who can help you build a holistic plan that includes income guarantees like annuities
annuities = income You can’t outlive
Unlike any other financial vehicles, annuities can provide income that you cannot outlive, yet only 15% of survey respondents own them
"It’s clear that the global pandemic, coupled with financial and social volatility, has had a significant impact on how Americans view risk personally and financially.
Rising levels of financial worries among Americans underscore the security and peace of mind that insured products can provide through retirement, yet many Americans are not taking advantage of them."
Chris Blunt, President & CEO of F&G
1 To qualify for the survey, respondents had to be at least 30 years of age, have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.
This CARAVAN survey was conducted by ENGINE INSIGHTS among a sample of 1,463 adults 30 years of age and older. In order to qualify, respondents had to have sole or shared financial decision-making responsibility for their household and own financial products valued at $10,000 or more. The online omnibus study is conducted three times a week among a demographically representative U.S. sample of 1,000 adults 18 years of age and older. This survey was live on September 16-23, 2020. Completed interviews are weighted by five variables: age, sex, geographic region, race and education to ensure reliable and accurate representation of the total U.S. population, 18 years of age and older.
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 annuity and life insurance products and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.