(NAPSA)—What lessons have Americans learned from the eco- nomic downturn, and how have those lessons affected their out- look and behaviors regarding sav- ings, investing, and retirement planning? To find out, MetLife Retire- ment Products commissioned an in-depth survey by Harris Interactive in late September of more than 2,000 individuals spanning the generations. Overwhelmingly, respondents said they were putting a cash cushion in place, reducing spending on nonessentials, and focusing more on protecting their assets than on seeking market gains. “Americans are entering a new period of preparedness,” observes Robert E. Sollmann, senior vice president, Retirement Products. “Just like patients who survive a near-fatal illness, today’s consumers are opting for a strong dose of preventive medicine. Despite rising equity prices, they are ushering in a new era of fiscal responsibility by building up rainy-day funds, reducing debt and opting for guaranteed and/or very-low-risk investments.” Of course there are shades of Americans whoplan to take steps to protect themselves from another financial crisis said they want to: e Reduce spending on nonessential purchases (65 percent) Build a cash cushion (57 percent) Allocate a portion of investmentsto guaranteed incomeor very-low-risk products (17 percent) Consult a financial adviser (15 percent) e Diversify their portfolio (15 percent). Reduce spending on non- essential purchases (65 percent) Build a cash cushion (57 percent) Allocate a portion of investments to guaranteed income or very-low-risk products (17 percent) Consult a financial adviser (15 percent) Diversify their portfolio (15 percent). Most Americans with retire- ment savings feel that the market turmoil and sliding economy in 2008-09 have had at least some influence on the way they plan for boomersfeeling the impact of mar- retirement (64 percent), with 29 percent saying the influence has been strong to very strong. The majority (55 percent) believes the events of the past year or so will adopt a more risk-averse stance. more, and a quarter believes that influence will be permanent. difference across the generations, with both younger and older baby ket losses more than younger generations and therefore tending to Nevertheless, even the young Gen Yers (18-34) showed a strong resolve to build up a cash cushion. Americans who plan to take steps to protect themselves from another financial crisis said they wantto: have an impact of 10 years or At the same time, some respon- dents to the survey, especially the younger generation, are optimistic about their personal recovery and the recovery of the economy in general—possibly because they possess fewer assets than older generations and have time on their side to try to recoup any assetslost. Nearly three in 10 (29 percent) in Generation Y believe that eco- nomic recovery will happen in two years or less, but almost half (49 percent) of Generation Y affected by the financial crisis believes their personal recovery will happen in two years or less. Among Gen Xers (ages 35-45), 32 percent say that economic recov- ery will take fewer than two years, and 41 percent say their personal recovery will happen by then as well. Older generations affected by the financial crisis are more likely to believe that their personal recovery will take much longer— 38 percent of younger baby boomers (ages 46-54) believe that personal recovery will take at least 10 years or more. The financial crisis has influ- enced the way the majority of Americans now plan for retirement, making them more conser- vative and disciplined. During 2009, many people took steps toward improving their financial health by paying down debt and making retirement plan contribu- tions. For instance, one-quarter of survey respondents increased their retirement savings compared with two years ago. As individuals and families work to get their financial house in order, it can be an ideal time to speak with a financial adviser. For further information, please contact a MetLife adviser in your community, or go to www.metlife. com and click on the Retirement tab.
