TREND TRUTH
Seniors Unlikely to Retire with Economic Uncertainty
Rising unemployment rates and a financial system marked by chaos in recent months have many US consumers worried about their own personal finances. During the past three months, more than 95,000 people have blogged about their retirement prospects. On April 18, 2009, FGI Research observed a significant spike in traffic on social media sites regarding the subject of retirement. Through investigation, we found that 60 Minutes aired a show the previous day dedicated to the discussion of changes affecting seniors’ retirement plans in the midst of the recession.
In an effort to gauge the level of concern the average American has about his or her retirement, FGI Research conducted an independent survey entitled, “Consumers in Crisis.” The survey was designed to identify and measure how American consumers are reacting to changes in the economy. We asked 1500 respondents, with demographic qualities that reflect the 2000 census data, for their opinions. A clear majority of the seniors, whom we contacted, voiced concerns about their financial futures. In fact, the study revealed that 56.3% of seniors (aged 65+) are worried about having enough money on which to retire. As noted in the 60 Minutes report, “Many [seniors] fear they will never get to retire.”
Seniors today aren’t the only ones interpreting ill omens. When asked about their personal finances, 49.7% of all respondents said that their financial situation has ‘gotten worse than it was a year ago.’ So, what is the answer for those Americans who are struggling to weather the financial storm? 62.9% of those surveyed are resolved to save more money in the next twelve months. Reflecting recent events, 53.2% believe that a government-insured savings account is the safest place for their investments, highlighting perceptions of economic instability. Indeed, the public is worried and looking for a safe investment. Companies competing for business in today’s economy would do well to address this issue in an effort to reassure consumers. Establishing, or in some cases, re-establishing, trust is a significant step along the path toward brighter futures.