A recent survey showed investors are increasingly adopting pessimistic attitudes when it comes to their financing and ability to plan for retirement, showing a growing need to protect their assets with life insurance.
The financial crisis had a particularly debilitating effect on the attitudes of investors, reported MFS Investment Management. In a study of investors worth between $100,000 and $1 million in household investable assets, the report noted 44 percent have decided to reduce their spending over the last year to save money, while 59 percent agree they're more concerned than ever about their ability to retire. In addition, 32 percent have lowered their expectations of their quality of life after they stop working.
"Mass affluent investors are holding significant amounts of cash and are specifically concerned about rising health care costs, the federal deficit and reductions in Social Security. Their high cash balances mean they may be overly exposed to the effects of inflation. Plus, this portfolio positioning may increase their risk of not being able to reach their long-term financial goals," said William Finnegan, senior managing director of U.S. retail marketing for MFS.
Retirement plans of any kind can be quickly thrown off schedule by an unforeseen incident, necessitating a term life insurance policy at the least for seniors looking to protect their families financially.