AXA Equitable's Latest Survey: Making Ends Meet Surges as a Growing Worry
April 20 2009 - 11:18AM
PR Newswire (US)
Protection from Outliving Savings Remains Top Retirement Concern,
but Paralysis Persists NEW YORK, April 20 /PRNewswire-FirstCall/ --
AXA Equitable Life Insurance Company today released results of a
February 2009 consumer study that shows most Americans over the
past year have grown increasingly worried about making ends meet.
And while protecting themselves from outliving their retirement
savings remains their top concern, they are slow to do anything
about it. The study revisits the same financial concerns addressed
in the first AXA Equitable survey conducted in April 2008, and
repeated last October. In the latest survey, 65 percent of those
polled said they were concerned about meeting everyday expenses,
including the ability to pay their mortgage, should they lose their
job -- up from 54 percent a year ago. "Our research showed that
paying bills was a middle-of-the-pack concern last April," said
Christopher M. "Kip" Condron, chairman and chief executive officer
of AXA Equitable. "The fact that it is now a top priority
underscores how the yearlong market volatility has shaken
Americans' sense of security about their immediate financial
future, most notably as a result of job instability." The survey
also shows that since paying today's bills has become a greater
concern, consumers are now less focused on keeping inflation, taxes
and declining markets from eroding retirement savings. Reducing
taxes and protection from inflation both dropped three spots on the
overall ranking of financial concerns -- from second to fifth.
Similarly, concern about protection from market conditions fell two
notches to the eighth spot. Although meeting day-to-day financial
obligations is clearly more important, the study finds that
securing guaranteed income for life remains the top priority for 69
percent of Americans polled. A sense of inertia follows that focus,
as half of the respondents indicated they have done nothing to
change their financial picture. "The fact that people are still
concerned about the health of their retirement during the market
volatility we are experiencing makes it clear that they still
understand the importance of preparing for their financial future,"
said Mr. Condron. "What is alarming, however, is that so many are
still not taking the steps needed to achieve those goals." Men and
Women Have Different Views but Agree on One Point...Retirement Will
Have to Wait The latest AXA Equitable study shows that
approximately 40 percent of men and women, who are within 10 years
of retiring, plan to postpone the action. Specifically, 39 percent
of women said they will delay retirement by four years to a revised
age of 66. Forty percent of their male counterparts will wait an
extra three years and now expect to retire at the age of 64. In
both cases, current market volatility is the primary reason for the
shift in thinking. The survey also finds that women overall are
more concerned about today's economic realities and are reacting
more conservatively as a result. While 75 percent of women polled
said that receiving guaranteed income for life is a priority, only
58 percent of men agree. Similarly, 74 percent of women said that
paying everyday expenses is "very important," but just 54 percent
of men shared the same sentiment. In response to market conditions,
the study shows that men are also more willing than women to take
action: -- Almost three in 10 men (28%) expect to invest in a new
product, compared to just 20 percent of women. -- More than six in
10 men (61%) plan to shift the asset mix of their investments,
compared to 51 percent of women. "Women continue to show more
concern than men as the period of economic instability lingers on,"
said Barbara Goodstein, executive vice president and chief
innovation officer of AXA Equitable. "What is troubling is that it
appears that their sense of caution has morphed into an inability
to take the prudent steps necessary to navigate through this
crisis." Sense of Panic More Prevalent Among the Affluent The
latest survey also finds that amid current market volatility,
behaviors and attitudes vary significantly by affluence, as well as
the age of the affluent sample polled. Notable results include: --
Approximately seven in 10 of the affluent polled (67%) are
concerned about their ability to pay everyday expenses if they were
to lose their job, compared to just 60 percent of the non-affluent.
-- Six in 10 affluent are worried that they may not be able to pay
their mortgage if they were to lose their job, compared to slightly
more than half (54%) of the non-affluent. -- More than three in
four (76%) of the older affluent polled are concerned about
securing guaranteed income for life, compared to just 63 percent of
the younger affluent. -- Less than half (48%) of the younger
affluent polled believe their personal financial situation has
declined in the past year, while 66 percent of the older affluent
feel they are worse off today. "Individuals with greater household
income are clearly not immune to the effects of this crisis," said
Ms. Goodstein. "Nor are the affluent Americans who are closer to
retirement and are panicking at the notion that they may never
recover completely from the events of the past year." About the
Study AXA Equitable conducted an online survey among 1,116 randomly
chosen U.S. consumers who were at least 25 years old, with annual
household incomes of $50,000 or higher. Affluence is defined as
annual household incomes of $100,000 or greater. Older affluent is
defined as those age 45+, and younger affluent is defined as those
between the ages of 25 and 45. The research was conducted by a
third-party independent research firm. The study was fielded in
February 2009, and comparisons are made in some cases to similar
surveys conducted in April 2008 and October 2008. The numbers
reflecting consumer financial concerns represent the percentage of
respondents rating a 9 or 10 on a 10-point importance scale. The
study has an error margin of +/-3% at the 95% confidence level
interval (i.e., 95 out 100 times that this study is repeated, the
scores will fall within +/-3%). For more information on the study,
including support slides of data, visit
http://www.axa-equitable.com/news/2009pdf/axa-making-ends-meet-media-package.pdf.
About AXA Equitable In business since 1859, AXA Equitable Life
Insurance Company is a leading financial protection company and one
of the nation's premier providers of life insurance, annuity, and
investment products and services. The company's products and
services are distributed to individuals and business owners through
its retail distribution channel, AXA Advisors, LLC; to the
financial services market through its wholesale distribution
channel, AXA Distributors, LLC; and to corporations and their
employees through its corporate distribution channel, Corporate
Markets. AXA Equitable, a subsidiary of AXA Financial Inc., is part
of the global AXA Group, a worldwide leader in financial protection
strategies and wealth management. "AXA Group" refers to AXA, a
French holding company for an international group of insurance and
financial services companies together with its direct and indirect
consolidated subsidiaries. For more information, visit
http://www.axa-equitable.com/. AXA Equitable Life Insurance Company
(NY, NY) issues life insurance and annuity products. Guarantees in
the life insurance and annuity products are based on the
claims-paying ability of AXA Equitable Life Insurance Company.
Variable products are co-distributed through affiliates, AXA
Advisors, LLC and AXA Distributors, LLC. AXA Financial and its
affiliates do not provide legal or tax advice. DATASOURCE: AXA
Equitable CONTACT: Michael Arcaro, +1-212-314-2030, , or Matthew
Klein, +1-212-314-2919, Web Site: http://www.axa-equitable.com/
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