The quarterly survey by investment management firm Brinker Barometer showed that advisers continued to be worry about the economy in the second quarter of this year, and see it affecting their clients’ retirement outlook. More than half of advisers (58%) said they are “very interested’ in guaranteed income products, particularly in light of the market’s volatility, for their clients approaching retirement.
The largest number of advisers (36%) said between 26% and 50% of their clients will have to work past traditional retirement age, according to the report. The second largest number of advisers (33%) said 11% to 25% of their clients will need to work into “retirement.’ Fifteen percent of advisers expect the majority of their clients (51% to 75%) to work, and the same number expect under 10% of their clients to work. A scant 1% portion of the advisers foresee 76% to all of their clients working into retirement.
Procrastination climbed to the top impediment to retirement savings, with 29% of surveyed advisers reporting this as the top obstacle for their clients (up from 18% last quarter). Healthcare costs (17%) and extravagance (15%) received the second largest number of responses.
Despite concerns as to how the economy could be affecting their clients’ savings, many advisers remain confident in the economy overall. While only 13% reported being “highly confident,’ 50% are at least “somewhat confident.’ That is a slip from the 74% who were somewhat or very confident in the Brinker Barometer at the start of 2008 (see Advisers Remain Confident in Economy for 2008) but not much different than the results from the first quarter (see Advisers Say Extravagance, Procrastination Hinder Retirement Savings).
Forty percent of advisers expect the economy to rebound in mid-2009. Some more optimistic advisers expect it to rebound at the beginning of 2009 (27%) or the end of 2008 (17%). Sixteen percent do not expect a rebounded economy until 2010.
Almost half of surveyed advisers (48%) hope to see the next administration—which the majority surveyed hope to be Sen. John McCain—address energy concerns as a priority in the first 100 days. More than half of advisers (51%) recommend reducing restrictions on offshore drilling as a solution. About one-third (35%) think increased spending on alternative energy sources would be the most beneficial.
The survey received 380 responses from financial advisers.