Survey on Generational Retirement Perspectives

Retirement Talk among Parents and Children Taboo

Survey on Generational Requirement Perspectives

Indexed Annuity Leadership Council

June 9, 2011

Adequately planning for retirement is on the minds of parents and their children alike. But a new survey[1] conducted for the Indexed Annuity Leadership Council (IALC) finds that adults are reluctant to talk about it. The Survey on Generational Retirement Perspectives found that over a third of adults (36%) say they never talk to their parents, who are not yet retired, about retirement plans. Similarly, a third (34%) of parents talk to their adult children (18+) about their financial retirement plans once a year or less.

Wendy Waugaman, CEO and President of American Equity, says “Actively taking control of your financial future can provide peace of mind for you and your family members.  Families that engage in an open dialogue about retirement and retirement planning are taking the first step towards taking control.”

Although parents and their adult children aren’t discussing retirement plans in a consistent, significant manner, they are worried about each other’s financial future. The Survey on Generational Retirement Perspectives found that more than half (54%) of parents with children 18 and older believe they are at least a little responsible for ensuring their children have enough money on which to retire someday.

And a majority (56%) of adults, with parents that are not yet retired, are at least a little concerned that they may have to financially support their parents after they retire.

Key findings from the survey include:

  • Parents have anxiety about their children’s financial futures. Nearly two-thirds (65%) of parents are at least somewhat concerned that their children may not have enough money to be able to retire comfortably and when planned.
  • When it comes to managing their finances, people are reluctant to take risks, and more so than they were five years ago. More than two-thirds (67%) of adults are at least somewhat reluctant to take risks when it comes to managing their finances, including their retirement savings. Roughly two-thirds (65%) of adults are as or more reluctant to take risks than they were five years ago.
  • Today’s retirement doesn’t necessarily mean extended vacations or days of leisure. Three out of four (75%) adults said that working part-time after age 65 best represents what it means to retire for most people. In contrast, only 20% said that not working at all by age 65 best represents what it means to retire for most people these days.

The IALC has developed guidelines for consumers to help them determine what questions to ask and traits to look for in an indexed annuity that will meet their family’s financial planning needs.

For full survey results, please contact:

Jodi Fleisig, Senior Vice President Media Relations

jodi.fleisig@porternovelli.com

(404) 995-4568

Allison Vennerberg, Media Relations

allison.vennerberg@porternovelli.com

(202) 973-4791


[1] The survey was conducted using random digital dialing among a national probability telephone sample of 2020 adults, comprising 1,017  men and 1,003  women 18 years of age and older, living in the continental United States.  Fieldwork for this study was conducted using ORC International’s CARAVAN® Survey during the period of April 21 – 23 and April 28 – May 1, 2011.  It has a margin of error of plus or minus 2.1 percentage points for results based on the total sample.

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