Recent economic times and their impact on retirement and retirement preparedness have brought into sharper focus the existence of retirement “personalities,” according to a study conducted by the Allianz company.
A poll conducted for the study showed that 92 percent of respondents believe there is a retirement crisis in the nation, a figure that increases among those older 40 and those in lower income levels. Among those aged 44 and older, for whom retirement is at least in sight, more than half feel unprepared for retirement and even more are concerned about having inadequate retirement income.
Among the personality types emerging from the study are:
Overwhelmed—about a third, these people are in “survival mode” and expect to have to significantly cut back on their lifestyles in retirement.
Distracted—about a tenth, these people are worried that their retirement income will be inadequate but they don’t have a plan for addressing that issue.
Resilient—about a quarter, these people are planning on working longer, continuing to save for retirement, and supplementing their retirement income with work after retirement.
Iconic—about a fifth, these people may have reduced some of their spending but believe they have a handle on their retirement finances.
Savvy—about a fifth, these people have few financial concerns.
For almost all, though, the financial crisis was a “wakeup call” with around half cutting back on their spending and a tenth going so far as to tell their children to expect less financial support. Other common reactions have been to pay closer attention to their own investments and to financial news in general and to become more concerned about protecting their money versus accepting risk in search of higher growth. For many, purchasing an annuity might be an attractive investment option because of its guarantee of income for life, it said.