Sixty-one percent of retirement-age investors in a recent survey believe that low interest rates and rising inflation will make it harder to create a retirement income stream that will last their lifetime, Global Atlantic Financial Group reported this week.
A quarter of participants said they are extremely or very concerned about the effect inflation will ultimately have on their ability to live comfortably in retirement.
The survey of retirement-age investors with between $250,000 and $2 million in assets and no pension also found that while 96% believe protected, guaranteed monthly income in retirement is important, only 24% said they use annuities and 23% bonds to protect their assets.
Instead, 73% cited a mix of stocks and mutual funds and 67% cited cash equivalents as the way they protect assets — in contradiction to fears many reported of a stock market correction and continued inflation this year.
"External factors such as inflation, market volatility and interest rates are all valid reasons for people to be concerned about income as they approach retirement," Paula Nelson, head of strategic growth for individual markets at Global Atlantic, said in a statement.
Nelson said the survey findings show that retirees and those approaching retirement are interested in the benefits of annuities but do not know enough to make an informed decision.
"This is an opportunity for financial professionals to learn more about the many options available in the market and how they can help their clients improve their overall retirement strategy," she said.
