PROTECTED RETIREMENT INCOME AND PLANNING STUDY
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This second cut of the third PRIP Study found that in the face of a potential recession coupled with the lingering effects of the pandemic, Americans are seeking retirement income protection.
Despite mounting economic concerns, the survey reveals a notable lack of financial preparation for the future: nearly one quarter of consumers don’t have any kind of financial plan and another 28% have an overall direction in mind, but no financial plan to get there.
Additional highlights from the study include:
- Nearly two thirds of consumers worry about their finances several times a month or more; one quarter worry about their finances every day.
- Less than half of respondents (48%) believe their retirement savings and sources of income will last them throughout their lifetime—a 13% drop from a year ago.
- 73% of consumers who work with a financial professional think their retirement savings and sources of income will last throughout their lifetimes compared to 36% who do not work with a financial professional.
- Among those who have an annuity, 74% believe their savings and sources of income will last their lifetime, compared to only 43% for those without an annuity.
The survey’s findings correspond with a research paper by David Blanchett, managing director and head of retirement research for PGIM DC Solutions and research fellow with the Alliance’s Retirement Income Institute. Based on an analysis of data from 2020, the paper concludes that investors with professional investment management perform better in adverse economic conditions than self-directed investors.
“Consumers’ strong desire for protection amid this tricky economic environment is why the Alliance is relentless in helping people understand how to protect their hard-earned savings”
Jean Statler, CEO of the Alliance for Lifetime Income
This second cut of the third installment comes after PRIP 3.0 published in July 2022, which provided insights into perceptions of annuities in retirement planning and the concerns of investors and financial professionals in the current market environment. The third installment followed PRIP 2.0 published in December 2021, which found that investors who were asked to build their own hypothetical $1 million retirement portfolio, said annuities and other income-producing assets were the most favored. The inaugural study published in June 2021, found investors eager for financial protection amid a challenging fixed-income environment and the declining prevalence of private sector pensions. The PRIP studies are an outgrowth of the Protected Lifetime Income Study, an annual, Census-balanced survey of U.S. adults the Alliance sponsored in 2018 and 2020 to gauge consumers’ attitudes and behaviors around retirement-income planning.
To view the full findings, visit the links below:
To view the full findings of the third installment of the Protected Retirement and Income Planning study, visit the links below:
To learn more about the findings from the second installment of the Protected Retirement and Income Planning study (PRIP 2.0), visit the links below:
To learn more about the findings from the first Protected Retirement and Income Planning study, visit the links below: