Market volatility is blamed for sleepless nights over finances

The recent turmoil in the equity markets is causing nearly one in three (31 percent) middle-aged and older adults to lose sleep or feel greater levels of stress as a result of their financial position, a YouGov survey sponsored by The Hartford shows.

The survey, sponsored by Hartford Life Limited, a subsidiary of The Hartford Financial Services Group, Inc., revealed that U.K. adults over the age of 45 are already feeling the effects of recent turmoil in the equity markets and are experiencing greater levels of anxiety about their finances. Those who are age 55 and older expressed the most anxiety over the market turbulence with 47 percent of respondents in this age group stating that they are very concerned or fairly concerned that the market conditions will hurt their pension. This compares to 38 percent among the 45-54 age group and 32 percent among the 35-44 age group.

More than one in five U.K. adults (21 percent) who responded to the survey also said that they would be very willing or fairly willing to pay an annual fee in exchange for a guarantee that their pension savings could not fall, even if the market does.

Commenting on the findings of the survey, John Enos, Managing Director, Marketing and Distribution, at The Hartford said: “In volatile equity markets, a guarantee on your retirement savings can provide invaluable peace of mind. This survey demonstrates that a large part of investing is psychological – market volatility can cause investors to feel greater levels of stress or even lose sleep. The guarantee available with The Hartford’s pension product, Hartford Platinum, called ‘Guaranteed Retirement Income Plan’ or GRIP, provides added security for clients as they know that their future pension income won’t fall if the markets fall.”

Consumers Reviewing Investment Strategy

The Hartford survey underlines the challenges faced by savers in the current UK equity markets. When questioned on their financial plans for the next few months, less than half of the survey respondents (49 percent) said that they would continue with their normal investment strategy, with one in 10 (12 percent) saying that they did not know how they would change their strategy. Despite this, just 2 percent of survey respondents said that they had sought professional advice as a result of the recent market conditions.

“The survey results demonstrate that a significant percentage of UK savers don’t know what to do with their investments over the coming months, with only half of the respondents indicating that they will continue as normal.

“The poll highlights the significant opportunity for IFAs to provide investment advice to new and existing customers during this volatile times as just two percent of respondents indicated that they had turned to financial advisers. Professional investment advice is a must in order to ensure that consumers select the most suitable investment or retirement product,” commented John Enos.