NAVA Members Expect Consumers to Grow More Cautious

NAVA, Inc., the Association for Insured Retirement Solutions, has surveyed 300 insurance industry professionals on their beliefs about possible consumer behavior in the face of an uncertain economy.

The survey, taken at NAVA's annual meeting in Philadelphia October 6, revealed the following:

* 65% believe that investor confidence is either flat or falling.
* 99% believe that most retirement-minded Americans will react to the financial crisis by moving money into "safer" investments, becoming more risk adverse, avoiding equities, and even "stashing their savings under their mattresses."
* 68% believe that variable annuity "living benefits," with their specific guarantees against downside market risk, will become more popular.
* 50% believe the Troubled Asset Relief Program (TARP) will stabilize the financial markets; 46% believe it will not, and 4% had no opinion.

Financial Planning: NAVA Members Expect Consumers to Grow More Cautious