Jackson National Life Insurance Company® (Jackson®) today revealed the results of its 2016 Investor Education Survey as part of the organization’s participation in National Retirement Planning Week®. While the vast majority of respondents (85.79 percent) indicated they save money frequently and have a retirement account and/or an investment portfolio,1 more than 60 percent said they do not deem themselves confident enough to make appropriate investing decisions.2
“It was alarming for us to discover so many consumers lack investing confidence,” said Bill Burrow, director of sales of Elite Access for Jackson National Life Distributors LLC. “The silver lining here is a large portion of investors also indicated they are interested in building their financial and investing knowledge, with some even considering it a top priority.3 We feel Jackson is well positioned to help them, as we have always believed educating advisors and providing them with the tools and resources to meet the evolving needs of their clients is essential.”
Another trend reflected in this year’s results is investors’ demand for trust and transparency, perhaps above all else, when it comes to their financial/investing situation.
- In terms of the attributes investors are looking for in an advisor, more than half of respondents (50.79 percent) chose “honesty,” with the next-highest percentage choosing “level of financial and investment knowledge” (25.09 percent). 4
- When asked what would make the biggest difference in their financial outlook, 30.99 percent of respondents said “having a financial professional who really ‘gets’ me.”5
Other key findings from the 2016 Jackson Investor Education Survey include:
- More than a quarter (25.55 percent) of respondents chose “I don’t have enough time to review the huge volume of resources available for investor education” as their biggest challenge regarding investing confidence, while close to 19 percent of respondents chose “I don’t have a good understanding of financial/investment products.”6
- More than half of respondents (56.66 percent) rate “saving enough money for retirement” as their top financial concern.7
- Investors consider Social Security an uncertain source of retirement income, with nearly half (48.86 percent) of respondents identifying the program’s role in their future retirement as “a small supplement to my retirement income, but not a significant source of income” and 13.59 percent believing their Social Security benefits will be “not even enough to purchase a pack of gum.”8
Dan Martin, director of digital communications and strategy for Jackson, said the general lack of financial confidence seen in this year’s survey serves as a clear call to action for financial services providers and advisors when it comes to the importance of offering relevant, useful content.
“The most encouraging results are those that identified a genuine interest in financial and investing education,” Martin said. “As an industry, we have an incredible opportunity to help U.S. investors gain confidence and take control of their financial future, and the commitment on behalf of investors to proactively seek out the resources they need to build their financial knowledge is an all-important first step.”
The 2016 Jackson Investor Education Survey gauges the opinions of non-retired U.S. investors with more than $75,000 in investable assets on key topics relating to retirement and investing/financial education, knowledge and confidence. The survey is published on the Center for Financial Insight, Jackson’s online resource designed to raise the overall level of financial education and confidence in the U.S. by providing useful content framed in a way that is relevant, consumable and engaging for the modern investor.
Held during financial literacy month, National Retirement Planning Week is an annual initiative led by the National Retirement Planning Coalition, a group of prominent education, consumer advocacy and financial services organizations that have joined together to promote and increase awareness of the need for comprehensive retirement planning. Participating companies and organizations will sponsor events and activities throughout the week.
Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $220.3 billion in IFRS assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.
Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Jackson National Life Distributors LLC.
*Jackson has $220.3 billion in total IFRS assets and $207.1 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of 12/31/15). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It has been in existence for over 165 years and has $749.6 billion in assets under management (as of 12/31/15). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
1 2016 Jackson Investor Education Survey, Question 3
2 2016 Jackson Investor Education Survey, Question 7
3 2016 Jackson Investor Education Survey, Question 8
4 2016 Jackson Investor Education Survey, Question 11
5 2016 Jackson Investor Education Survey, Question 6
6 2016 Jackson Investor Education Survey, Question 5
7 2016 Jackson Investor Education Survey, Question 2
8 2016 Jackson Investor Education Survey, Question 10
Melissa Hernandez, External Communications Manager
Phone: (303) 224-7572