MINNEAPOLIS – January 10, 2022 – Despite the start of a new year, a majority of Americans remain concerned about market volatility, with more than three-quarters saying they expect the market to be highly volatile in 2022. These findings from the 2021 quarterly survey on the market perceptions of Allianz Life Insurance Company of North America (Allianz’s life), highlight lingering concerns about a number of health and economic risks Americans face every day.
Amid the growing number of cases of the Omicron variant, 67% say they fear the new COVID variants could cause another recession. And as inflation hits 40-year highs, 74% say they are concerned about their purchasing power over the next six months. Another 64% say their income does not keep up with spending, and the same amount worries their income does not keep up with tax increases.
“Many risks are magnified in early 2022, and nearly eight in 10 (77%) expect the market to remain volatile this year,” said Kelly LaVigne, vice president of Consumer Insights, Allianz Life. “In addition, 59% say
they expect a market correction in 2022, which hopefully means people are starting to think about what to do now to protect themselves if that happens.
Today’s Risks Affecting Tomorrow’s Pension Plans
While many struggle to overcome these short-term challenges, 57% say the risks of market volatility will have a major impact on their retirement plans over the next several years. And with the added pressure of increased uncertainty, 61% say they’re worried their current financial strategy won’t provide them with the lifestyle they would like to have in retirement.
“With all of these different factors looming, it’s a critical time for people approaching retirement age to think about how to mitigate these risks and adjust their retirement strategies,” said Vine.
Right now, a third say putting money into a financial product that provides a guaranteed income stream in retirement is the most important step to having a secure retirement – the highest since early 2019 Generation X expressed the most interest. in a product that offers guaranteed income (39% vs. 33% for Millennials and Baby Boomers at 30%). At the same time, 66% of Americans say it’s important to have retirement savings in a financial product that protects them from market losses.
* Allianz Life conducted an online survey, the Allianz Life Quarterly Market Perception Study Q4 2021, in December 2021 with a nationally representative sample of 1,004 respondents aged 18 and over .