Uncertain? Confused? Join the Club

Uncertain? Confused? Join the Club -
A recent Guardian survey, Life Insurance Company has found that Americans are overwhelmed by the prospect of saving for retirement, and they do not know how insurance -life part of the overall planning. This survey indicates that all Americans are showing uncertainty and, at worst, complete inaction with regard to the financial decision making.
The survey also revealed the continuing uncertainty about the economy, coupled with the belief that it is headed in the wrong direction, as the main source of anxiety in every stage of life on the ability to save for a comfortable retirement.



This feeling of being overwhelmed about retirement planning further increases the distress of many Americans feel about long-term financial security. While almost all respondents (92%) surveyed say they are confident in their personal financial decision-making, almost four in 10 in the general population (39%) and over half (52%) of generation Y and a third of Gen X do not even know where to start when it comes to retirement planning.
Among factors the survey focused on perceptions were people in the direction of the economy is heading. From the perspective of generations, Generation X (82%) believes the economy is headed in the wrong direction and feels less financially (47%) of any group. Three quarters of the general population also shares a pessimistic vision of the direction of the economy, while over a third (37%) do not have a sense of financial security. Members of Generation X (59%) are most concerned that they will not have enough money saved for retirement, perhaps reflecting the sequence of economic forces that have affected their work life.
Respondents who have a whole life insurance were the most confident they have saved enough for a comfortable retirement. This sense of security may be due to their knowledge that the cash value of a whole life insurance policy is available on a tax-advantaged basis to supplement retirement income. However, among the general population, the survey found that there is a lack of understanding of how the different types of life insurance works. Americans in general are divided as to whether it is smarter to buy a term life insurance and invest the rest, or buy a whole life insurance and treat it as part of the overall financial portfolio one (40% each).
As for how their perceptions of the economy have impacted their decision global financial decision, the survey found that two-thirds of respondents from the general population (65%) are more likely to keep their money in a savings account rather than invest, despite the fact that 62% of them believe that the market down is an opportunity. However, most respondents (60%) still believe that it is important to continue to invest in their retirement funds because the economy is less stable, with skittish Gen X being the exception: 47% of respondents in this cohort believe investing in their retirement fund is actually less important during this period of economic instability.
based on the results of the survey, Generation X may have been disproportionately affected by the crisis of the economic landscape, but the Guardian survey indicates that all Americans are showing uncertainty and inaction when it comes to financial decision making.
So what do these results tell us? He says the financial services industry needs to do a better job of educating the consumer through all generations about how they can and must plan their financial future, and not just pure financial products, but insurance-life too.
This is the LIFE foundation comes in. We have been educating consumers for the past 17 years on various types of insurance and what these products do. LIFE has the resources and powers as a third party without profit to help consumers make these important insurance decisions, but the industry needs to do a better job of accessing and using these tools .