AGEIST collaborated with Jackson on an investor survey to discover how the COVID - 19 pandemic may have affected the outlook those aged 50 to 70 had on their future. In part two of this three-part series, we discuss some investor’s thoughts on the global health crisis brought on by the pandemic and the outcomes of their financial futures.
Living longer and healthier means an increased need for future financial certainty
Today, what may matter even more than the absolute number in your lifespan is the quality of your health span – the amount of time that you are not just alive, but also healthy and fully engaged.
We’ve found an interesting correlation between optimism and longer, healthier lives1. People who believe they will live healthier and longer lives, tend to act in ways that increase their life span and their health span. If you believe you will be around for a long time, you will do a better job of taking care of your life and health.
A confidence in health, despite a pandemic
In 2020, AGEIST collaborated with Jackson on a consumer survey to discover how the COVID-19 pandemic affected the outlook those aged 50 to 70 had on their future2. Surprisingly, we found that although COVID-19 was a massive global health crisis, it did not greatly affect how our demographic felt about their physical wellbeing. Most were still as optimistic about their health and wellness as they were pre-pandemic, because they believed it was in their control.
Healthier behaviors can lead to a greater chance of a longer and healthier life. We have a great deal of agency over how our later years will be lived, and our belief about how much control we have over our health is one of the key drivers of our behaviors. So, if thoughts about our health continue to be optimistic, it follows that health outcomes might be better than scientific tables could have us believe.
An area of uncertainty emerged during the pandemic
We discovered that while some areas of our study remained surprisingly unaffected, one area, in particular, was filling minds with stress in a way that had previously not – concerns about financial futures. If you are optimistic that your health span may potentially be a good, long time; then it makes sense that you would want a solid, dependable way to reduce the uncertainty around your financial future.
One way to remove some of this stress and add a bit of predictability to your financial future is with an annuity*. Our 2020 study revealed that many people are still unfamiliar with financial planning products that can offer a steady income in retirement3.
An annuity may be a useful tool to help reduce anxiety around your financial future. For additional information on annuities, you should speak to your financial professional.
*What is an Annuity?
Annuities are long-term, tax-deferred vehicles designed for retirement. The principal value of the variable annuity will fluctuate based on the performance of the underlying investment options and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met.
Add-on living benefits, available for an additional cost, can provide a guaranteed stream of income in retirement however may be subject to conditions or limitations. There is no assurance an add-on benefit will provide sufficient supplemental income in retirement.
Guarantees are backed by the claims paying ability of the issuing insurance company.
1. Jackson Financial Research Recap, AGEIST 2020 Consumer Survey, October 2019. 804 men and women aged 50 to 70 in Atlanta, Chicago, Dallas, New York City, and San Francisco with an active lifestyle and an income above $75,000.
About the author
Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. You should rely on your own independent advisors as to any tax, accounting, or legal statements made herein.
Jackson® is the marketing name for Jackson National Life Insurance Company® (Home Office: Lansing, Michigan)and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Jackson National Life Distributors LLC.
David Stewart is not affiliated with Jackson.