Americans React To Market Volatility: AXA Equitable Study Finds Significant Shift In Consumer Attitudes And Behavior
November 20 2008 - 2:14PM
PR Newswire (US)
Research Underscores the Priority of Income Guarantees and Trusted
Financial Advice; Key Differences Also Exist Along Gender Lines NEW
YORK, Nov. 20 /PRNewswire-FirstCall/ -- AXA Equitable Life
Insurance Company announced today results of an October 2008 study
that revealed the consumer attitudes and behaviors of Americans
have shifted rather dramatically in the past six months. Among the
most notable results, almost eight in 10 of those polled (78%)
ranked income guarantees as a top financial priority, up 16
percentage points from a similar AXA Equitable poll conducted in
April. "It's no surprise that attitudes and behaviors have changed,
especially given the period of economic instability we're
experiencing," said Barbara Goodstein, executive vice president and
chief innovation officer for AXA Equitable. "What is striking,
however, is the heightened priority being placed so quickly on
securing a stream of lifetime income." The AXA Equitable study also
found that those placing a priority on protection from outliving
retirement savings increased dramatically, from 59 percent six
months ago to 71 percent in October. Securing protection against
market conditions also increased considerably with 68 percent
ranking it as a priority, compared to a little more than half (53%)
back in April. Other notable findings from the October study
included: Consumers Are Almost Divided Between Waiting It Out and
Taking Action The study found that slightly more than half of those
polled (54%) said that they have not made financial changes, nor do
they intend to do so. For the 25 percent of those who have thought
about doing something, the actions most considered included meeting
with an advisor (62%), reallocating investments (47%) or making
withdrawals (24%). Of the 21 percent that have actually taken
action amid the volatility, 67 percent said that they reallocated
investments, 56 percent bought products like annuities, life
insurance and stocks, and 24 percent made withdrawals from 401(k)
or 403(b) accounts or liquidated personal investments. Information
Found on the Web, Trust Found in Financial Professionals The AXA
Equitable study also found that of all the sources to learn about
finances, almost half of those polled (48%) sought information from
news and financial Web sites. Other preferred sources included
newspapers (45%), financial professionals (35%) and magazines
(15%). Consumer perception shifted when polled on trust, as 61
percent ranked financial professionals the most trustworthy - 10
percentage points more than financial Web sites (51%) and 20
percentage points more than news Web sites (41%). "The fact that
people are using the tools at their disposal to educate themselves
is very encouraging," said Ms. Goodstein. "But more interesting is
that our study also illustrates that people still view the
relationship cultivated with a financial professional as invaluable
and better positions them to make sound decisions." Women More
Concerned About the Future, Men More Likely to Act Now Among the
most compelling differences along gender lines, the AXA Equitable
study found that women are more concerned amid the current market
turmoil about their retirement savings than male counterparts.
Specifically, 84 percent of women polled rated having a guaranteed
source of lifetime income as "extremely important," compared to
just 73 percent of men. Women are also significantly more concerned
about protecting retirement income from market downturn as 75
percent viewed it as "extremely important," compared to just 60
percent of men. Although more concerned than men about the future,
the study found that women are less likely to make changes in
response to current market conditions. Specifically, more than half
of men polled (55%) said that they have reallocated money in an
employer-sponsored account, compared to just 40 percent of women.
In addition, 29 percent of men have either withdrawn money from an
employer-sponsored account or mutual funds, or sold stocks,
compared to 19 percent of women. "Women are clearly focused on
protecting retirement income and have been responding more
conservatively as a result," added Ms. Goodstein. "Regardless of
whether you're a man or woman, it's important to evaluate your
current financial situation and make the well informed decisions
that help secure a strong financial future." About the Study AXA
Equitable conducted an online survey among 400 randomly chosen U.S.
consumers who were between the ages of 35 to 70, with household
incomes of $75,000 or higher. The research was conducted by a
third-party independent research firm, OTX Research. The study was
fielded in October 2008, and comparisons are made to a similar
survey conducted in April 2008. Based on the size of the study
sample, if the study were to be repeated 20 times, 19 times would
yield results within +/- 5%. 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. AXA
Equitable's assets under management totaled $665.6 billion as of
September 30, 2008. AXA Equitable's assets under management are
inclusive of assets under management held by an affiliate,
AllianceBernstein, L.P. AXA Equitable has sole responsibility for
its life insurance and annuity obligations. 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 is the creator of MyRetirementShop.com
(http://www.myretirementshop.com/), a lifestyle Web site that's a
one-stop-shop for information and resources to help consumers
redefine life in retirement. It's the company's latest innovation
in our At Retirement(R) platform, committed to helping individuals
near and at retirement make informed choices to enhance and
preserve their lifestyle. 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's operations are geographically diverse, with major
operations in Europe, North America, and the Asia/Pacific region.
AXA Group is listed as the 15th largest company in the world on the
2008 Fortune Global 500 list (based on revenues). "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. AXA Equitable Life
Insurance Company is an indirect, wholly owned subsidiary of AXA.
Listed on the Paris Stock Exchange, the AXA ordinary share trades
under the symbol AXA. The AXA American Depositary Share is listed
on the New York Stock Exchange under the ticker symbol AXA. 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. Securities are co-distributed through
affiliates, AXA Advisors, LLC and AXA Distributors, LLC. AXA
Equitable and AXA Advisors do not provide legal or tax advice.
DATASOURCE: AXA Equitable CONTACT: Michael Arcaro, +1-212-314-2030,
, Jo Ann Tizzano, +1-212-314-2979, both for AXA Equitable Web Site:
http://www.axa-equitable.com/
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