Summary
KKR & Co Inc (KKR, Financial), through its subsidiary Global Atlantic Financial Group, has released the 2025 Retirement Outlook Survey, which highlights significant gaps between investor priorities and financial advisor focus regarding retirement income and investment protection strategies. Conducted from December 6 to December 26, 2024, the survey involved 1,009 investors and 514 financial advisors, revealing opportunities for financial professionals to better align with client needs, especially in the context of market instability and the "Fragile Decade" of retirement planning.
Positive Aspects
- 88% of investors prioritize investments that provide a stable rate of return in retirement.
- 86% of investors value principal protection, indicating a strong preference for safeguarding initial investments.
- 80% of investors emphasize the importance of protecting investments to limit downside risk.
- 65% of investors prioritize creating or utilizing a plan that provides income for life.
Negative Aspects
- Only 66% of advisors prioritize investments for retirement that provide a steady income stream, compared to 88% of investors.
- Less than half of advisors (46%) emphasize the need for guaranteed income beyond pensions or Social Security.
- Only 54% of investors feel adequately protected from market downturns despite discussing protection strategies with advisors.
- Only 46% of investors have discussed annuities with their financial professionals, despite their potential for stability and guaranteed income.
Financial Analyst Perspective
The survey results underscore a critical misalignment between investor expectations and advisor focus, particularly in the areas of guaranteed income and investment protection. This gap presents a significant opportunity for financial advisors to enhance their service offerings by prioritizing client needs for stable income and risk mitigation. Advisors who adapt to these insights can potentially strengthen client relationships and improve client satisfaction, ultimately leading to better financial outcomes for both parties.
Market Research Analyst Perspective
The findings from Global Atlantic's survey highlight a growing demand for financial products that offer stability and protection in uncertain economic times. As investors increasingly seek predictable income streams and principal protection, financial institutions and advisors must innovate and tailor their offerings to meet these needs. The survey also suggests a potential market shift towards products like annuities, which can provide the desired security and income guarantees that investors are prioritizing.
Frequently Asked Questions
What is the main finding of the Global Atlantic 2025 Retirement Outlook Survey?
The survey reveals a significant gap between investor priorities and financial advisor focus, particularly in the areas of guaranteed income and investment protection strategies.
How many participants were involved in the survey?
The survey included responses from 1,009 investors and 514 financial advisors.
What age group and asset range did the survey target?
The survey targeted investors aged 55 to 75 with $250,000 to $2,000,000 in investable assets.
What opportunity does the survey highlight for financial professionals?
The survey highlights an opportunity for financial professionals to better align with client needs by focusing on steady income and lifetime security, thereby deepening client relationships.
Read the original press release here.
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