Today’s volatile economic market is causing investors to make changes in their retirement plans, according to new survey results from NAVA, the Association for Insured Retirement Solutions. In fact, more than half of the survey respondents, which include some 1,500 financial advisors across the country, say their clients believe they will have to work longer and delay retirement plans.

NAVA’s survey results (Financial Advisors’ Client Behavior Survey) provide new insights on client investing behaviors and changes during what is obviously a turbulent financial climate. For example: • Delay in Retirement Plans Many consumers have simply lost confidence in the financial market. That’s an understatement! Respondents say that their clients believe they will wind up working longer and thereby delaying retirement plans. In fact, not being able to retire when they want to is a primary concern for investors, according to their financial advisors. Moreover, nearly 85 percent of advisors note that their clients believe their future quality-of-life will worsen when they finally do get to retire. • Anxiety About Financial Security Nearly 100 percent of advisors have noticed an increase in clients’ level of anxiety about future financial security. That anxiety is leading investors to contact their advisors more frequently. Actually, more than 60 percent of advisors say their clients are contacting them with greater frequency than ever before. They note that investors aren’t just reaching out; rather advisors say that their clients are starting to listen more and placing greater value on their council. • Making Unwise Decisions Regardless of the fact that investors are reaching out more regularly than before, many are still choosing unwise investments and financial planning decisions in the end. According to the survey, more than half of financial advisors said their clients have made bad decisions more than usual despite their council. • Changing their Financial Portfolios While few, if any, clients are withdrawing their assets from their financial advisors, many have made other alterations, says the survey. Almost 50 percent of advisors claim their clients have decreased asset allocations to equities. In addition, more than 65 percent say clients have decreased new money invested since before the major market volatility started. In addition, more than 30 percent of financial advisors anticipate a significant increase in their clients’ interest in financial vehicles that offer guaranteed lifetime income. NAVA ®, is a non-profit trade association providing a variety of services to the industry, including educational forums, research, and conferences. Visit www.navanet.org  

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