Insurance Quotes

PHILADELPHIA- The Association for Insured Retirement Solutions, NAVA, Inc., announced today opinion survey poll results regarding the state of the nation’s economy and financial markets. The poll was carried out last Monday, October 6, at its annual meeting in Philadelphia. Instant electronic polling was employed by the 300 insurance industry professionals who were included in the polling. The main survey findings included:

While 65 percent of those responding believe that investor confidence is either flat or actually on the downturn, 99 percent indicate that most retirement headed Americans will do something to deal with the financial crisis, and they suggest the following: moving one’s money into “safer” investments, becoming more risk adverse, avoiding dealing in equity based financial products, or as a last resort, putting their money under the mattress.

It is the belief of 68 percent of those responding that the living benefits of the variable annuity, or specific guarantees against a downside market risk, will become increasingly popular with consumers.

There was a split position among respondents when it comes to the Troubled Asset Relief Program (TARP) regarding there opinion as to whether or not it will ultimately succeed in stabilizing the financial markets, with 50 percent believing that it will, 46 percent believing it will not, and 4 percent having no opinion.

NAVA president and CEO, Cathy Weatherford, says that a major objective of the annual meeting of NAVA this year is to determine how to deal with deteriorating consumer confidence, and that therefore it was of interest to learn during these difficult times, how insurance professionals are addressing their own financial plights. Instead of giving in to a state of fear and uncertainty, the majority of those responding said that they plan on maintaining the same strategies for their long-term retirement planning, and that rather than reducing their market exposure, they suggest that they have confidence that the markets will soon come back.

When queried on their opinions with regard to their on personal retirement financial strategies, 77 percent of those responding reported that they have decided to continue with their established long-term plans, and are not interested in making major near-term adjustments. Respondents also indicated their mixed opinions of how the financial crisis will affect consumer confidence during the next 12 months. Thrirty-five percent indicate that they believe that it will rise, with slightly more (41 percent) stating that it will fall.

Wetherford points out the importance of remembering that a strategy of doing nothing may not be the right one for individuals nearing or already in retirement who probably are not able time-wise to ride out the market. Those responding suggest for these people that a variable annuity can be an excellent choice.