Ageist series part 3: Wealth Span
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 the final part of this series, we wrap up the results of they survey and how the pandemic pushed some investors to reach out to financial professionals to help with their financial futures.
A balance during good and bad times
In 2020, AGEIST continued its research into the attitudes of our age cohort and learned more about how the effects of our life span and health span will move us forward in this enriching part of our life journey. But, what about our wealth span? In this article, we’ll explore how the financial element of our lives intermixes with our longevity and health. Also, we’ll share how the recent pandemic shaped new attitudes toward our financial outlooks.
The good news is we are living longer and healthier
In a 2019 AGEIST research study of our 50+ age cohort, 79% said they feel physically healthy and 95% revealed they still have lifestyle goals they want to achieve. In the words of one survey participant, “I am capable of learning new things. I am still improving!”1
How we coped with the bad news in 2020-2021
We found that the unprecedented uncertainty that major world events like the COVID-19 outbreak can have large and unpredictable effects on the global economy and on financial markets. Using history as a guide, if there is one thing we can count on, it is that these unpredicted events will continue to occur and with wide ranging effects. Since we will be living quite a bit longer, we will most likely witness more of these disruptive events.
The 2020 AGEIST research collaboration with Jackson explored how the pandemic may have affected the outlook those aged 50 to 70 had on their future. We discovered that attitudes toward life span and health span were surprisingly unaffected by this global health event, but our wealth span has us worried. The increased level of worry is new and did not exist in the AGEIST 2019 research. When asked about their financial futures, 34% said they were more anxious lately. In the words of one survey participant, “I feel less certain that my investments will last.”
What we are doing differently
We also learned from the 2020 study with Jackson, that only 31% of us are now making financial decisions alone2. While we remain confident in many areas of our lives, financial planning and income management for the years ahead may not be one of them. A survey participant summed up this feeling well, “I am looking for a financial advisor to get me through this.” We are no longer looking to plan for our financial needs in retirement on our own.
As we enter an age of accelerated longevity - the fastest growing age cohort today are those over 80. An increased life span and enriched health span may be coming quicker than some had previously predicted. The questions to now ask ourselves are, as we enter an age of accelerated longevity - the fastest growing age cohort today are those over 80. An increased life span and enriched health span may be coming quicker than some had previously predicted.
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.
1. Vernon Research Group, AGEIST Active 50 + Research Findings, Final Report 2019 Consumer Survey, November 19, 2019. 509 men and women aged 50 to 70 inAtlanta, Chicago, Dallas, New York City, and San Francisco with an active lifestyle and an income above $75,000.
2. 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.
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David Stewart is not affiliated with Jackson.