Political Party Drives Savings Approach

Transition Boomers—those less than 10 years from retirement—agree that rising health care costs will have the greatest effect on their retirement outlook.

According to the 2012 Retirement & Politics Survey from Allianz Life Insurance Company of North America, 67% of all Transition Boomers, regardless of party affiliation, listed health care expenses as their top concern, with Republicans at 64%, Democrats at 69% and Independents at 66%. Social Security ranked second at 53% for all Transition Boomers, followed by tax payment changes (31%), rising national debt (26%), unemployment (19%) and education (4%).   

When it comes to overall retirement savings philosophy, 59% of Republican Transition Boomers identified themselves as being conservative or moderately conservative compared with 36% of Democrats. However, Democrat Transition Boomers were more likely to be balanced in their retirement savings approach, with 29% identifying themselves as balanced versus 18% for Republican Transition Boomers.   

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Regarding the effect the election will have on their approach to retirement savings, 29% of Republican Transition Boomers were likely to become more aggressive if Mitt Romney wins while 30% of Democrats would become more conservative. If President Barack Obama is re-elected, 81% of Democrat Transition Boomers anticipate no changes to their retirement approach while 42% of Republicans said they would become more conservative.

 

(Cont’d…)

Thirty-nine percent of Independents and 29% of those with no preference identified themselves as conservative or moderately conservative, while 30% of Independents and 34% with no preference identified themselves as balanced in their retirement savings approach.   

The majority of this group of Transition Boomers also said the outcome of the election would not trigger a change in their retirement savings strategy. Specifically, if President Obama is re-elected, 64% of Independents and 75% of no preference Transition Boomers said they would keep the same retirement savings strategy. If Romney wins, 61% of Independents and 73% of no preference Transition Boomers said they would keep the same retirement savings strategy.  

Retirement planning is clearly important to all Transition Boomers. Seventy-two percent began saving for retirement in their 40s or earlier, and 28% started in their 30s. More Republican Transition Boomers (79%) than Democrats (69%), Independents (71%), or Transition Boomers without political party preference (67%) said they have started saving for retirement prior to age 50.   

In total, 17% of Transition Boomers indicated they haven’t begun saving for retirement yet. Only 12% of Republicans,19% of Democrats, 19% of Independents and 23% of those with no party preference said they have not yet begun saving for retirement.  

The Allianz Life 2012 Retirement & Politics Survey was commissioned by Allianz Life Insurance Company of North America and conducted September 17 to 20, 2012, among a random sample of online panelists by Ipsos. The results included 1,209 respondents ages 55 to 65.

 

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