Lump Sum Research

InFRE teams up with the SOA and LIMRA for a final look at how the downturn has affected retirees in,
The Financial Recovery for Retirees Continues: The Impact of the 2008-2011 Crisis.”

The Society of Actuaries’ (SOA) Committee on Post Retirement Needs and Risks, LIMRAand the International Foundation of Retirement Education (InFRE) are pleased to make available a research report based on the findings of a June, 2011 survey posed to 461 retirees with $100,000 investable financial assets who also participated in the 2008 and 2009 studies listed below.

American retirees are feeling more financially secure since 2009, but fewer are estimating how long their assets will last into retirement.

The most recent survey found that fewer retirees reported feeling less financially secure now than when they first retired (28 percent in 2011, 49 percent in 2009). The study reveals that retirees’ confidence levels are approaching levels recorded before the 2008 downturn, when only one-fifth of retirees reported feeling less financially secure than when they first retired.

The new study also found that retirees have been paying down their debt, with 46 percent of respondents in the 2011 study having no debt compared to 38 percent in 2009. While this might boost feelings of financial security, the fact that an increasing proportion of retirees are not estimating how long their assets might last in retirement (46 percent in 2011 from 38 percent in 2008) is a concern for financial professionals. In fact, the number of retirees acknowledging their assets and investments need to last at least 20 years has declined 20 percentage points since 2008.

“We’re surprised by the number of retirees who have not considered how long their assets and investments might last given the market volatility of recent years,” said actuary and retirement expert Anna Rappaport, FSA, MAAA, who serves as chairperson of the Society of Actuaries’ Committee on Post-Retirement Needs and Risks.

The study found that individuals who have calculated how long their money might last in retirement are more confident they have saved enough money to live comfortably than those individuals who have not. The research also indicated that 61 percent of retirees have someone they consider to be their personal financial advisor, and that retirees with financial advisors are more likely to engage in financial planning and have higher overall retirement assets.

“This research emphasizes the importance of retirees educating themselves on how to successfully plan for their retirement years, while understanding the value of partnering with a trusted financial advisor for guidance,” observed Betty Meredith, CFA®, CFP®, CRC®, Director of Education and Research, InFRE.

To read the full study, “The Financial Recovery for Retirees Continues,” visit here.

InFRE teams up with the SOA and LIMRA:
Will Retirement Assets Last a Lifetime?

The Society of Actuaries’ (SOA) Committee on Post Retirement Needs and Risks, LIMRA and the International Foundation of Retirement Education (InFRE) are pleased to make available a research report based on the findings of a 2008 survey posed to approximately 1,500 retirees with $100,000 investable financial assets.  The survey questions explored how retirees made decisions about investing their assets and purchasing financial products prior to the financial crisis.  Click here to view the Will Retirement Assets Last a Lifetime report and supporting materials. View the What a Difference a Year Makes update of the survey reflecting 2009 opinions.

The February, 2009 report, authored by Sally Bryck of LIMRA, provides valuable information for retirement counselors and the financial services industry.  If you have any questions, please contact InFRE’s Director of Education and Research, Betty Meredith by email (this will open your email application), or call 847-756-7342 ext. 133.