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Thirty-five percent of Americans in a new survey said they were comfortable with current market conditions, up from 26% who said this in 2015, Allianz Life reported Monday.
At the same time, 37% of respondents said recent volatility was causing them to worry about their retirement savings. Thirty-eight percent said if a severe market decline that caused them to lose a lot of money should occur, they would not have time before retirement to rebuild their nest egg.
The survey found that a desire for protection from these concerns has increased since the 2015 study. Asked about their retirement planning, 57% of respondents said they were willing to give up some potential gains for a product that would protect part of their retirement savings, up from 48% in 2015.
Researchers also asked what actions they could take in the five to 10 years before the start of retirement to help ensure a more secure retirement. Thirty-one percent said putting some of their money into a financial product that offered both a balance of potential growth (up to 10%) and some level of protection (no loss of money if the market dropped 10%).
The study said expectations of future volatility partly explained this need for protection. More than four in 10 survey respondents still feared a big market crash or a major recession on the horizon. As a result, interest in financial products that offer a balance of growth potential and protection is growing.
"Volatility matters, and while we see some increasing comfort with volatility, it is driving a simmering anxiety in many Americans," Paul Kelash, vice president of consumer insights for Allianz Life, said in a statement.
"This anxiety about the negative effects volatility can have on their retirement savings is very real and people are still searching for the right solutions."
