Half of retirement savers have changed their investment behavior since 2020.
A 2022 Allied for Life Income Protected Retirement Income and Planning (PRIP) study of 2,025 participants aged 45 to 75 revealed that 50% are more inclined to protect their retirement income since the onset of Covid-19. Interestingly, 44% agree that financial advisors should introduce clients to financial products that offer guaranteed income for life in retirement.
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Older workers want to prioritize investment protection over growth, likely due to market volatility, high inflation, rising interest rates and rising energy prices . Fears of a full-scale recession have overshadowed 2022, although analysts expect a moderate recession for an extended period.
The median average retirement income of retirees age 65 and older was $47,357, reports Annuity, citing the most recent data from the US Census Bureau. Most rely on Social Security and annuities for a stable income stream in retirement, but don’t understand that fixed income options lose value due to inflation.
In addition, many are locked into a lower monthly income because they dipped into Social Security sooner than needed.
In 2022, the maximum monthly benefits was $4,194 for those retiring at age 70 and $2,364 at age 62, the minimum retirement age. In reality, the average income of retirees in August 2022 was $1,672.76. Average annuity interest rates for a premium deposit of $100,000 ranged between 6.54% and 7.78% in August 2022, which translates to an annual income range of $6,540 to $7,780 , reports Investor’s Business Daily, citing data from Cannex Financial Exchanges.
Covid-19 has been a wake-up call for Americans without a financial plan and decent retirement savings.
Many may have opted for DIY investing and lost more, while others may have sought financial advice from certified professionals and turned to a new portfolio design for future fluctuation protection. of the market.
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If you are just starting to invest, it can be useful to work with a robo-advisor. Robo-advisors offer portfolio management services just like traditional financial advisors, but they generally have lower fees and account minimums. here are the Top 10 robo-advisors.
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