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Study Retirees Eye Other Assets to Boost Returns

December 30, 2008
Related Topics: Finance/Taxes, Retirement/Pensions, Latest News
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Forty-two percent of retirees surveyed by MetLife are considering reallocating their assets to investments that might provide a higher rate of return, but 47 percent of them aren’t sure how they’ll do it.

Only 17 percent of retirees who have experienced losses would rebalance their current portfolio to get a higher return, a study of the results said. One-fifth of retirees are exploring guaranteed-income products such as fixed-income annuities, 17 percent are moving or planning to move more assets to bank CDs and/or money market funds, and 14 percent plan to move more assets to fixed-income strategies, a press release said.

The study also noted that 59 percent of retirees have seen their retirement assets shrink as a result of the current economic environment, and 44 percent don’t expect that the return on their retirement funds will keep pace with inflation on the essentials.

Harris Interactive conducted the study of 1,027 retired U.S. adults 63 and older who invest through a 401(k) plan, IRA or individually via mutual funds, among other products. Retirees were polled Oct. 1-10.

Filed by John D’Antona Jr. of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce com.

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