Retirement Confidence Report
Thank you for joining us. My name is Matt Sommer and I’m Head of Defined Contribution and Wealth Advisor Services at Janus Henderson Investors.
The findings of our 2022 Retirement Confidence Report have received a significant amount of attention in recent weeks, so I wanted to take this opportunity to share a few highlights from the report and talk briefly about how the insights provide an opportunity for advisors to build and strengthen relationships with new and existing clients.
Before getting started, let me tell you a little more about the research.
In October 2022, Janus Henderson surveyed approximately 2,000 self-directed investors age 50 and older to better understand how rising market volatility and inflation were impacting their financial decision making.
Three key findings that stood out from this research are:
One – investors are unsettled.
More specifically, 86% of survey respondents said they are “concerned” or “very concerned” about inflation, and 79% are “concerned” or “very concerned” about the stock market.
With both stocks and bonds posting losses year-to-date in 2022, and headlines on rising prices becoming an everyday occurrence, investors have good reason to be concerned. Recent market declines will inevitably lead to delayed retirements and budget adjustments for some investors.
Two – some investors are re-evaluating the future.
According to our study, 45% of investors feel less confident in their ability to have enough money to live comfortably throughout retirement because of market performance and inflation, while 54% said their confidence has not changed.
Clearly, retirement confidence hasn’t collapsed, but it has suffered as a result of recent stock market performance and the inflationary environment.
A third key finding from our research is that just 13% of investors have moved money out of stocks or bonds and into cash as a result of financial market performance or rising inflation.
Despite evidence of rising inflation and stock market volatility weighing heavily on investors, very few moved money out of stocks or bonds. Instead, investors tightened their budgets, as nearly half (49%) said they have reduced their spending or plan to reduce spending.
While the study didn’t probe further into why investors were staying the course amid unprecedented volatility, the finding does suggest that awareness of the challenges of market timing is improving – which should be music to the ears of advisors with value propositions centered on partnering with clients to develop a long-term plan that brings their financial goals into reach.
Thanks again for taking the time to learn more about our 2022 Retirement Confidence Report. I hope you found the data useful.
If you would like to take a deeper dive into our research, visit janushenderson.com to review the full results.
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The opinions and views expressed are as of the date published, are subject to change and may not reflect the views of others in the organization. They are for information purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy, sell or hold any security, investment strategy or market sector. There is no guarantee that the information supplied is accurate, complete, or timely, nor are there any warranties with regards to the results obtained from its use.