AIG survey finds 53 percent want to live to
100—yet 51 percent are uncertain their savings will last
Nearly six in 10 (59 percent) fear running out
of money more than death
AIG Life & Retirement kicks off Plan for
100 to educate Americans to prepare for increased longevity
As more people are living into their 80s and 90s, more than one
out of every two Americans has their sights set on even greater
longevity. According to a survey1 released today by AIG Life &
Retirement, a surprising 53 percent say their goal is to live to
100 years. Thirty-nine percent identify deeper family relationships
as the main benefit of such a long life, 32 percent name seeing the
world change and 17 percent want to remain productive.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190410005283/en/
53% of Americans surveyed say their goal
is to live to age 100 (Graphic: Business Wire)
Longer Lives Come with an Array of Concerns
This optimism for aging—fueled in part by medical advances and
healthier lifestyles—is tempered by the financial challenges
individuals may face in a retirement that could stretch 40 years or
more:
- More than half (51 percent) of
respondents are uncertain their current retirement savings plan
would financially provide for a 100-year lifespan
- Less than one in 10 (9 percent) are
extremely confident they will have enough income throughout their
retirement
- Nearly six in 10 (59 percent) fear
running out of money more than they fear death
“Living longer should be a cause for celebration, but for many,
longevity can bring anxiety and financial uncertainty,” said Kevin
Hogan, Chief Executive Officer, AIG Life & Retirement. “While
no one can know if they will live to 100, they can plan for it. Our
goal is to help educate Americans about the need to prepare for
longer lives so they can achieve financial and retirement
security.”
When asked to pinpoint their greatest concern about living to
100, the potential for serious health conditions (35 percent)
topped the list, followed by burdening their family (27 percent)
and running out of the money needed to live comfortably in
retirement (25 percent). When considering financial concerns,
generating lasting retirement income (23 percent) and the rising
cost of healthcare (23 percent) tied as the most significant
financial challenge Americans said they would face when planning
for retirement. These challenges were followed by concerns about
Social Security and Medicare (19 percent) and stock market
volatility (19 percent).
Furthermore, with recent market volatility and December’s nearly
ten percent stock market drop still fresh in consumers’ minds, 86
percent of Americans confess to anxiety about funding their
retirement lifestyle through their retirement account investments,
which typically include stock market exposure, as opposed to a
guaranteed source of income.
While financing a long life is a concern for all, the burden
weighs more heavily on the shoulders of female
respondents—especially since they have longer projected life
expectancies than men. Women are significantly more anxious than
men about funding their retirement lifestyle through their
retirement account investments versus a guaranteed source of income
(60 percent of women are somewhat or very anxious, compared to 47
percent of men).
Income Certainty and Professional Help Enhance Happiness and
Retirement Security
Results show that even a little more certainty can go a long
way; six in 10 (60 percent) said $10,000 more per year of
guaranteed retirement income would help ease their minds.
Additionally, 75 percent of survey respondents said guaranteed
income every year for life would give them greater levels of
happiness and satisfaction in retirement. Certainty seems to have
an even greater impact on female respondents; women were more
likely than men to say they believe they would derive happiness
from guaranteed income (women averaged 4.21 on a 5-point scale vs.
men at 3.98).
“Retirement planning in the U.S. has yet to adequately adjust
for an aging population, a decline in pension benefits, and longer
lifespans,” said Todd Solash, President, Individual Retirement,
AIG. “As a country, we have to face the fact that relying on
savings alone will leave many at risk of running out of money
during their golden years. We must fundamentally change how we talk
about retirement and replace what has been more of a singular focus
on savings with a broader perspective that also includes protected
lifetime income sources like annuities as part of an overall
retirement plan.”
Working with a financial professional also boosts confidence for
a potentially long retirement. When asked whether they believe
their current retirement savings plan will sustain them financially
until the age of 100, respondents with advisors are significantly
more confident than those going it alone. Nearly half (45 percent)
of those with advisors are very or extremely confident, compared to
only 8 percent of do-it-yourselfers. In fact, working with an
advisor allays financial fears about growing older; nearly
two-thirds (64 percent) of respondents with an advisor say they
want to live to 100, compared to only 37 percent of those without
an advisor.
“Preparing financially for a long life is achievable if you have
a financial plan,” said Robert Scheinerman, President, AIG
Retirement Services (formerly known as VALIC). “Personal finance
can be intimidating, but it doesn’t have to be. Working with
an advisor can help you clarify goals, map out the future you
envision and build a strategy for creating a secure retirement. For
employers, there is a real opportunity to better educate and engage
employees to help them create a financial plan and develop strong
savings habits early in their career. Individuals, employers,
financial advisors and legislators all have a part to play in
ensuring Americans can achieve retirement security.”
Respondents are also thinking about how they can ensure the
financial security of their loved ones in the case where their life
expectancy differs from their spouse; only 16 percent of
respondents say they are extremely confident that their partner
would be able to manage his or her spending from retirement savings
if they were to die first.
“Planning for 100 means planning for the unexpected,” added Rod
Rishel, Chief Executive Officer, Life Insurance, AIG. “For their
peace of mind, Americans should be financially prepared to live to
100 while also taking steps to ensure the financial security of
their loved ones in the event of an untimely illness, disability or
death, especially if you’re the breadwinner.”
Plan for 100
The survey was conducted as part of the launch of AIG’s Plan for
100, a new initiative focused on educating and empowering
individuals, employers and financial advisors to help Americans
prepare for longer lives and, in turn, retirements that could last
four decades or more. The initiative, with its 100-year theme
complementing the centennial celebration at AIG, includes the
launch of a new website (Planfor100.com) and podcast series to
raise awareness about the impact of increased longevity and educate
Americans about potential solutions. The Plan for 100 Podcast is
available on the Planfor100.com website, as well as iTunes, Google
Play, Spotify, Stitcher and SoundCloud. The podcasts feature a
variety of experts and thought leaders, including: financial
researcher Michael Finke, Ph.D.; retirement finance author and
speaker Ed Slott; economist and retirement expert Tom Hegna; and
aging and cognition researcher Alan Castel, Ph.D. The
Planfor100.com website will be updated regularly with additional
podcasts, videos and research.
The AIG 2019 Plan for 100 Survey was conducted online within the
United States by Michael Finke, Ph.D., The American College of
Financial Services, in December 2018 and January 2019 among 1,012
U.S. adults ages 40-74 who have at least $50,000 in retirement
accounts.
About AIG Life & Retirement
AIG Life & Retirement, a division of AIG (NYSE: AIG), brings
together a broad portfolio of protection, retirement savings,
investment and lifetime income solutions to help people achieve
financial and retirement security. The business consists of four
operating segments – Individual Retirement, AIG Retirement
Services, Life Insurance and Institutional Markets – and holds
longstanding, leading market positions in many of the markets it
serves.
AIG Life & Retirement includes AIG member insurance
companies American General Life Insurance Company (Houston, TX),
The United States Life Insurance Company in the City of New York,
and The Variable Annuity Life Insurance Company (VALIC), Houston,
TX as well as their affiliates. Securities products are distributed
by AIG Capital Services, Inc., member FINRA. Additional information
about AIG Life & Retirement can be found at
www.linkedin.com/showcase/aig-life-&-retirement.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. Building on 100 years of experience, today
AIG member companies provide a wide range of property casualty
insurance, life insurance, retirement solutions, and other
financial services to customers in more than 80 countries and
jurisdictions. These diverse offerings include products and
services that help businesses and individuals protect their assets,
manage risks and provide for retirement security. AIG common stock
is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
1 Survey of 1,012 U.S. adults ages 40-74 who have at least
$50,000 in retirement accounts
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190410005283/en/
Matt Burkhard (Media): 212-458-4253; matthew.burkhard@aig.comJoe
Madden (Media): 713-831-4867; joe.madden@aig.com
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