Global Atlantic Investor Outlook Study: Next Generation of Retirees Apprehensive of Market Conditions; Inflation-Induced “Sticker Shock” is Widespread

NEW YORK--(BUSINESS WIRE)--A new study from Global Atlantic Financial Group (Global Atlantic) reveals that the next generation of retirees, defined as those without a traditional pension, is divided on their outlook for the economy in 2022, and nearly nine in ten (87%) have recently experienced “sticker shock” when purchasing groceries, dining out, or traveling.

The survey of retirement age investors (ages 55 to 70) with between $250,000 and $2 million in assets and no pension, finds that two in five (41%) are optimistic about the outlook of the economy this year, 40% are pessimistic, and 19% are neutral. Most (71%) are concerned that low interest rates on financial products will negatively affect their ability to grow their retirement assets and over six in ten (61%) believe that low interest rates, combined with rising inflation, will make it harder to create a retirement income stream that will last their lifetimes.

Over half (57%) believe inflation will go higher in 2022, and two-thirds (67%) have at least some concern they will not have enough to live comfortably in retirement. The survey also found that annuity owners are more comfortable with their investments than non-owners, presumably because of the protection their annuities offer. Half of annuity owners (48%) are extremely or very comfortable with their investment asset and retirement income protection strategy versus only 33% of those without an annuity. Additionally, 62% of those with an annuity say the amount of money they have saved for retirement will last the rest of their lives compared to 48% without an annuity.

“People who are nearing or in retirement face a variety of factors that can influence their personal finance decisions,” said Paula Nelson, head of strategic growth for Individual Markets at Global Atlantic. “The findings in the study highlight how the lack of guaranteed income from a pension is affecting this next generation of retirees, and using annuities in lieu of pensions as a way to generate a protected lifetime income stream can be an effective way to ease investors’ concerns.”

The survey also found that 61% of participants have at least some interest in climate-conscious or environmentally aware investments while 39% are not interested. Among females, 67% demonstrated some interest compared to 54% of males.

Consumers can visit Global Atlantic’s web page for additional resources on how to protect retirement savings from inflation, low-interest rates, bond value risk and market instability. Financial professionals can also visit Global Atlantic’s financial professional website to learn more.

About Global Atlantic

Global Atlantic Financial Group is a leader in the U.S. life insurance and annuity industry, serving the needs of individuals and institutions. With differentiated investment and risk management capabilities, deep client relationships, and a strong financial foundation, the company has established a track record of delivering proven, value-added solutions and long-term growth. Global Atlantic is a majority-owned subsidiary of KKR, a leading global investment firm that offers alternative asset management across multiple strategies and capital markets solutions. KKR’s parent company is KKR & Co. Inc. (NYSE: KKR). Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries.

About the Survey Methodology:

The survey was conducted in January 2022, as an online quantitative study by Artemis Strategy Group among 1,023 investors ages 55 to 70 with assets of $250k to $2 million and no pension. This sample represents a critical group in transition: a new generation that will retire without a pension. Global Atlantic estimates that there are about 7 million households (or 12 million people) in the U.S. who have between $250k and $2 million and do not have a pension.