F&G's Fifth Annual Risk Tolerance Tracker Finds Inflation, U.S. Presidential Election and Cyberfraud Top of Mind for American Investors

Rhea-AI Summary

F&G's fifth annual Risk Tolerance Tracker reveals American investors' top concerns for their financial future. Inflation remains the primary worry at 80%, followed by the U.S. presidential election (72%) and recession fears (72%). Other significant concerns include cybercrime/fraud (63%) and geopolitical risks (61%).

The survey shows a slight improvement in risk tolerance, with 73% of respondents less likely to take financial risks, down from 78% in previous years. However, 66% still worry about retirement income. Generational differences are evident, with Baby Boomers most concerned about the election's impact (79%) and GenX about recession (76%).

Despite these concerns, 58% of respondents don't use a financial professional, and only 14% own an annuity. F&G CEO Chris Blunt emphasizes the importance of proactive planning and leveraging advisors for long-term financial security.

Positive

• Slight improvement in risk tolerance, with 73% less likely to take financial risks compared to 78% in previous years
• 88% of respondents consider guaranteed income for life as important for retirement planning
• 91% of respondents prioritize maximizing accumulated income for retirement

Negative

• 80% of respondents worried about inflation's negative impact on their financial future
• 72% concerned about the U.S. presidential election's effect on finances
• 72% worried about a potential recession
• 66% concerned about retirement income due to recent events
• 58% of respondents don't use a financial professional
• Only 14% of respondents own an annuity

DES MOINES, Iowa, Oct. 16, 2024 /PRNewswire/ -- American investors¹ are keeping a close eye on the economy and the nation's capital according to a new survey from F&G Annuities & Life, Inc. (NYSE: FG) (F&G), a leading provider of insurance solutions serving retail annuity and life customers and institutional clients. F&G's fifth annual Risk Tolerance Tracker asked American investors how the events of the past 12 months have impacted their views on retirement and risk, as well as the issues they are concerned about for the year ahead.

Inflation continues to rank as the top stressor, with 80% of respondents saying they are worried about it having a negative impact on their financial future. This was followed closely by worries about the U.S presidential election, which were cited by nearly three quarters (72%) of American investors. More specifically, nearly half (48%) said they expect the presidential election to have an impact on their retirement plans.

Worries about a recession are also top of mind at 72%. Additionally, cybercrime/fraud (63%), geopolitical risks/tensions (61%), historically high debt (59%), stock market volatility (59%) and the impact of Generative AI on finances (50%) are other leading concerns when people evaluate factors impacting their financial future.

Americans' Risk Tolerance Over Time

When it comes to how American investors see overall risk tolerance and the mindset around their financial future, there are some signs of improvement, although many fears remain.

• 73% of respondents say the events of the last 12 months made them less likely to take financial risks. This is down from the past two years when 78% of respondents said they had become more financially risk averse.
• Worries about retirement income still persist as 66% are worried about retirement income due to the events of the last 12 months, down only 3% from 2023.
• Fewer people (53%) feel like their financial safety net was ripped away as a result of the past 12 months compared to 60% in 2023 and 67% in 2022.

The Generational Risk Gap

When it comes to how different generations view risk, Baby Boomers are the most worried about the U.S. presidential election having a negative impact on their financial future (79%), compared to Generation X (72%) and Millennials (64%).

Meanwhile, GenX respondents are most worried about the U.S. entering a recession (76%), compared to Millennials (72%) and Baby Boomers (69%).

All generations continue to cite inflation as the top worry that may affect their financial future.

Despite this, well over half (58%) of respondents stated that they don't currently use a financial professional. More concerning is that the two generations that are either in or approaching retirement may not be getting appropriate advice. Over half of Baby Boomers surveyed (53%) and nearly two-thirds of GenX (63%) don't use a financial professional.

The Opportunity for Guaranteed Income Products

In addition to overlooking advice, American investors are also overlooking guaranteed income products as a way to hedge these unpredictable times as only 14% of respondents noted owning an annuity.

When asked about how important various factors were when considering their investments for retirement income,² 88% noted guaranteed income for life as important just behind maximizing their accumulated income (91%). 

"Our fifth annual survey shows that while risk tolerance is modestly increasing, uncertain economic factors continue to weigh on the minds of American investors," said Chris Blunt, CEO of F&G. "Yet at the same time, many investors are not taking advantage of the tools they need to plan for the long term, such as leveraging an advisor and building a balanced portfolio that includes guaranteed income products. Being proactive now can give investors more peace of mind in the months and years to come."

For more information on F&G's latest survey, please visit fglife.com/research 

Survey Methodology

The survey was conducted online by ROI Rocket, a MarketOnce company and an industry leader in consumer and B2B research. It was fielded from August 22 to September 9, 2024 among a nationally representative sample of 1,678 U.S. adults 30 years of age and older who have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.

About F&G

F&G Annuities & Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.

Media Contact

Gabrielle Simon
pro-F&G@prosek.com
413.695.3818

Investors Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
515.330.3307
Investor.relations@fglife.com

¹ Survey fielded among a nationally representative sample of 1,678 U.S. adults 30 years of age and older who have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.

² This question fielded among adults ages 45+

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SOURCE F&G Annuities & Life, Inc.

FAQ

What are the top financial concerns for American investors according to F&G's Risk Tolerance Tracker?

According to F&G's (NYSE: FG) fifth annual Risk Tolerance Tracker, the top financial concerns for American investors are inflation (80%), the U.S. presidential election (72%), and recession fears (72%).

How has risk tolerance changed among American investors in the past year?

F&G's survey shows a slight improvement in risk tolerance, with 73% of respondents less likely to take financial risks, down from 78% in previous years.

What percentage of American investors use a financial professional according to F&G's survey?

F&G's Risk Tolerance Tracker reveals that 58% of American investors don't currently use a financial professional.

How do different generations view financial risks according to F&G's 2024 survey?

F&G's 2024 survey shows that Baby Boomers are most worried about the U.S. presidential election (79%), while GenX is most concerned about a potential recession (76%). All generations cite inflation as their top financial worry.

What percentage of American investors own an annuity according to F&G's latest survey?

F&G's latest Risk Tolerance Tracker indicates that only 14% of American investors surveyed own an annuity.