PLANADVISER - March/April 2021 - 15

Plans vs. Reality
The pandemic has been forcing many to retire early
ALLIANZ Life's 2021 Retirement Risk Readiness Study found that the COVID-19 pandemic
had a detrimental impact last year on people's plans to retire. Sixty-eight percent of those
who left employment said this was earlier than they had planned, up from 50% who had
to retire unexpectedly in 2019. Exactly one-third, 33%, blamed health issues, up from 25%
in 2019. Only 22% cited unexpected job loss, down from 34%.
There appears to be a disconnect between people's retirement plans and what actually
occurs, as 70% of non-retirees said they expect to continue working, at least part-time, up
from 65% the previous year. In reality, a scant 6% of retirees are still working, virtually on
par with the 7% who had jobs in 2019.
Forty-three percent of non-retirees said they can afford to save nothing for retirement
right now, up from 37%. Forty-two percent said they are too far behind on their retirement
goals to catch up-an increase from 31%. Forty-nine percent said they are just trying to
squeak by and cannot even think of saving for retirement, and 56% said stock market
swings are making them nervous about their retirement savings.
" Although the full story of this pandemic won't be known for some time, it's clear that
the financial security of many Americans has been severely compromised, " says Kelly
LaVigne, vice president of consumer insights at Allianz Life. " It's crucial that Americans
use this opportunity to consider any new risks that could affect their retirement planning
and develop strategies to help mitigate those risks and future unexpected events. "
Wake-Up Call
The survey does show signs of hope that Americans might be working to repair their
savings, as 65% said they now pay more attention to what they save and spend, and 58%
have cut back on their spending.
More near-retirees-those within 10 years of retiring-were taking action in 2020 vs. in
the previous year. In particular, they said they were making sure they save enough in their
retirement account-29% vs. 23%; diversifying their portfolio-42% vs. 27%; researching
expenses and risks associated with retirement-43% vs. 35%; creating a formal retirement
plan with a financial professional-37% vs. 29%; and purchasing a product that
provides a guaranteed source of retirement income-38% vs. 30%.
The 2021 study's findings are based on an online survey conducted in December
2020 among 1,000 people with an annual household income of $50,000 or more, if single;
$75,000 or more, if married or living with a partner; or having investable assets of
$150,000 or more. -Lee Barney
Nearly 7 in 10
Americans (69%)
who were ages
21+ in 2007 said
the COVID-19
pandemic will
have a greater
overall economic
impact than the
Great Recession
of 2007 - 2009.
More than twothirds
(68%) of
retired respondents
left work
earlier than
planned, up from
50% in 2019-
with the majority
doing so for
reasons beyond
their control.
Source: Allianz Life, 2021 Retirement Risk Readiness Study
planadviser.com March-April 2021 | 15
Almost twothirds
(65%) of all
respondents said
they now pay
more attention to
what they save
and spend.
ON THE MOVE
➜ OneDigital
Investment Advisors
acquired the assets of
Fulcrum Partners, marking
the former's expansion
into the nonqualified
deferred compensation
plan market.
➜ Genovese Burford
& Brothers Wealth
& Retirement Plan
Management LLC has
merged with CAPTRUST
Financial Advisors.
Genovese Buford,
headquartered in
Sacramento, California,
holds $3.13 billion in assets
under advisement.
➜ Will Fuller will
succeed Mark Mullin
as president and CEO
of Transamerica. Mullin
will become the new
chairman of Transamerica
Corp.'s board of directors.
➜ Erin Cho joined Mayer
Brown as a partner in its
employment and benefits
group in Washington,
D.C. She specializes in
Employee Retirement
Income Security Act Title I
fiduciary matters.
➜ AIG selected Lisa M.
Buckingham to the newly
created role of executive
vice president, global
head of AIG enterprise
design and life and
retirement separation
initiatives. -PA
➜

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PLANADVISER - March/April 2021

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