What Worries Americans the Most

May 24th, 2016, No Comments, be the first ».

Data released recently by Hartford Funds uncover Americans’ top financial concerns as they age, as well as what worries them the most about their aging parents. Overwhelmingly, Americans worry about becoming a financial burden on their family members and not having saved enough money. In addition, survey respondents are most worried about their aging parents maintaining a high quality of life.

“Finances are of course important, but disproportionate compared to qualitative issues like caregiving and maintaining a social network of family and friends,” said John Diehl, Senior Vice President, Hartford Funds. “Advisors need to be thinking about these qualitative, human-centric considerations when they approach discussions about aging with their clients.”

Eliminating the financial burden

Running out of money and becoming a financial burden to their children are the top concerns associated with aging, which were identified by survey participants (40 percent). Younger respondents, those between 35 and 54 years old, are particularly worried about these issues; nearly half (45 percent) cited these concerns, compared with one-third of their older counterparts.

Additional disparities emerged on the topic when looking at income. Specifically, those with income between $75,000 and $100,000 are more concerned about these issues than any other income group. In fact, they are nearly twice as likely to worry about being a financial burden on children or running out of money as respondents who make $50,000 to $74,999 annually (50 percent and 29 percent, respectively).

Millennials and Gen Xers Worry More About Disability than Older Workers

May 18th, 2016, No Comments, be the first ».

In the 2016 Insurance Barometer Study, 56 percent of consumers said they were concerned about supporting themselves if they became disabled and could not work. Specifically, 7 in 10 Gen X and Millennials consumers said disability was a financial worry, second only to having enough money in retirement. (Chart)

Despite those high levels of concern, only 33 percent of employed consumers have disability income (DI) insurance. May is Disability Insurance Awareness Month, an annual effort to inform people about the importance of protecting their paycheck in the event they suffer a disabling injury or illness and are not able to work.

According to the U.S. Social Security Administration, 1 in 4 of today’s 20 year-olds will become disabled before reaching age 67. How will these workers pay their bills? Research shows that half of working Americans couldn’t make it a month before financial difficulties would set in, and almost one in four would have problems immediately1. Even without a disability, the 2016 Barometer study reveals that two-thirds of Millennials and more than half of Gen X consumers said paying monthly bills was a financial concern.

For advisors, the challenge is connecting the need with an actual purchase. In the Barometer study, 72 percent of working consumers agreed that most people need disability insurance and more than half said they personally needed it. Yet, only 33 percent have DI insurance. Reminding consumers that protecting their paycheck is an important priority to ensure their financial security, as well as that of their families.

For more information, LIMRA has developed the 2016 Disability Awareness Month Fact Sheet, available for downloading.

1 Life Happens study, 2015.