| Copyright: | Business Wire | | Source: | Business Wire | | Wordcount: | 765 |
Business Editors
MINNEAPOLIS--(BUSINESS WIRE)--November 10, 2008--Despite historic market turbulence that has pounded 401(k) plans and retirement savings, American baby boomers surveyed Oct. 20-23 still believe their long-term financial health will be just fine. But the outlook isn’t all rosy.
In a national survey of 947 American adults, age 45 to 64, conducted for Thrivent Financial for Lutherans, a Fortune 500 financial services organization, three in five baby boomers (60 percent) responded that they are optimistic about their personal long-term financial well-being.
It wasn’t just well-to-do boomers who were hopeful, either. Nearly half (45 percent) of boomers with incomes of less than $25,000 expressed optimism about their long-term financial futures, while 61 percent of those earning $25,000 to $49,999 said they were optimistic about their finances.
Despite the positive long-term outlook, the survey also found that the market turbulence of late has taken a definite toll on boomers.
Three in five boomers (58 percent) are very doubtful (33 percent) or somewhat doubtful (25 percent) that their financial nest egg will last throughout their retirement, particularly given the latest market volatility.
Three in five boomers (62 percent) are either not confident that they have the proper financial strategy in place to survive the economic roller coaster (22 percent) or are unsure of their current financial strategy (40 percent).
More than half of all boomers (54 percent) expect they will have to delay their retirements as a result of market volatility.
“Optimism and pessimism about retirement finances seem to have gained equal footing within the psyche of boomers,” said Jane Zilch, vice president of distribution strategy programs for Thrivent Financial. “Despite the urge to hit the panic button, boomers need to remember that their retirement will last longer than that of their parents. Protect yourself now, but don’t lose sight of longer-term goals. ”
Unfortunately, many boomers may not have specific financial strategies in place to reach their goals. Just three in 10 surveyed (29 percent) reported working with a professional financial representative to assist them with their finances. However, those working with a professional were more likely to be optimistic about their long-term financial health than those working alone (70 percent versus 55 percent).
Market worries have also affected boomer behavior, according to the survey. The findings do not bode well for holiday spending, travel and even charitable giving.
Two in three boomers (63 percent) reported that they had cut back on their spending now and for the holidays due to market worries.
One in three (33 percent) said they had cut back on their giving to charity.
One in five (20 percent) confessed to canceling their holiday travel plans.
Other key behavioral findings included:
One in four (24 percent) boomers noted that they had altered their retirement plans.
One in eight (12 percent) said they had lost sleep due to market worries.
While most are not losing sleep, boomers reported they were finding ways to deal with their financial stress. The most common financial stress reliever among boomers was spending quality time with one’s family (46 percent). Other financial stress relievers included stuffing oneself with comfort food (11 percent), stocking up on antacids (6 percent) and going shopping (6 percent).
“Keeping the proper prospective during these volatile economic times is important,” added Zilch. “Talking with a financial professional and talking with loved ones can definitely help the situation. Remember, history has shown us that everything is cyclical, and this, too, shall pass.”
About the Thrivent Financial Market Volatility Survey
Data for this survey was collected via eNation online interviews by Synovate. Interviewing took place between Oct. 20-23, 2008, among a nationwide cross section of 947 U.S. adults age 45 to 64 of whom 47 percent were male and 53 percent were female.
About Thrivent Financial for Lutherans
Thrivent Financial for Lutherans is a Fortune 500 financial services membership organization helping nearly 3 million members achieve their financial goals and give back to their communities. Thrivent Financial and its affiliates offer a broad range of financial products and services including life insurance, annuities, mutual funds, disability income insurance, bank products and more. As a not-for-profit organization, Thrivent Financial sponsors national outreach programs and activities that support congregations, schools, charitable organizations and individuals in need. For more information, visit www.thrivent.com.
Securities are offered through Thrivent Investment Management Inc., 625 Fourth Ave. South, Minneapolis, MN 55415-1665, 800-THRIVENT (800-847-4836) a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC.
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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