For retirement-age investors, it’s about keeping their nest eggs safe

As the US market navigates a delicate path to recovery, a significant number of retirement-age investors are focusing more on securing their financial futures rather than pursuing aggressive growth.

That’s according to the latest findings from Global Atlantic's 2024 Retirement Outlook Survey.

Conducted in December 2023, the study surveyed investors aged 55 to 75 with investable assets ranging from $250,000 to $1 million. It underscores a prevalent cautious sentiment, with 61 percent of respondents favoring asset protection over investment growth.

Despite a positive performance from the S&P 500 in 2023, only 54 percent of those surveyed believe their assets are sufficiently shielded against market downturns. This focus on caution stems from the 2022 market slump, which saw the S&P 500 declined by over 18 percent, leaving a lasting lesson about the need for financial stability.

The survey highlights a strong preference for financial products that ensure stability and guaranteed income, with 65 percent of respondents emphasizing the importance of a retirement plan that provides enduring income. Additionally, 48 percent ranked protecting assets from losses as one of their top two investment objectives.

"Creating a retirement income plan that provides income for as long as I live continues to be a top priority among our clients," Paula Nelson, head of strategic growth for individual markets at Global Atlantic said in a statement.

In line with that, Nelson noted that asset allocation discussions with clients now often extend beyond traditional stocks and bonds to include a variety of products like annuities.

According to the findings, 81 percent of investors value strategies that limit downside risk while allowing for potential growth. Furthermore, two-thirds of the participants said they had discussed ways to shield investments from losses with their financial advisors.

Nearly half of the surveyed group had conversations about annuities in the past year, with 30 percent purchasing new annuities and almost 22 percent increasing investments in existing ones.

Encouragingly, the study also revealed high levels of client satisfaction with financial professionals, standing at 84 percent in 2023. "With multiple domestic and global events impacting the market, it is more important than ever for financial professionals to have regular and meaningful conversations with their clients about income protection," Nelson said.