Retirement advisors are expressing a grim mood as the wars in Israel and Ukraine continue, according to a monthly survey. The survey reveals that retirement advisors have a negative sentiment, with an overall outlook score of minus-18. Advisors are concerned about the impact of global social and political instability on the economy. The conflict in Israel has resulted in the deaths of over 10,000 Palestinians and 1,400 Israelis, while the war in Ukraine has escalated. The survey also shows that advisors have a negative view of the global economic system, leading to a decrease in allocations in foreign equities. However, clients' risk tolerance has increased, and advisors feel slightly more confident about their own work. While the outlook for the US economy has improved slightly, the view of the rest of the world has become much darker. The uncertainty caused by this complex mix of factors has left retirement advisors and their clients unsure of what to expect next. [b7f9e934]
Despite these concerns, US retirement worries are subsiding as wealth increases. The era of gold-plated pension plans is long gone, and worries over Social Security's eventual insolvency and under-invested Americans outliving their nest eggs persist. However, the article from Bloomberg highlights that retirement worries in the US are diminishing as wealth rises. The author mentions that the era of gold-plated pension plans has been replaced by concerns about Social Security's solvency and many Americans not having enough savings. The article discusses the implications of flush US retirement accounts and how they contribute to the subsiding retirement worries. [3dbf8c07]
Retirement advisors and their clients are growing anxious about the U.S. economy as the Federal Reserve decides on interest rates. The Retirement Advisor Confidence Outlook (RACO) survey shows a drop in confidence, with a score of minus-7 in May, down from zero in April. Advisors are concerned about the Fed's struggle with inflation and the lack of promised interest rate cuts. The upcoming presidential election is also causing anxiety among advisors and clients. Retirement investors are becoming risk-averse, with the client risk tolerance score falling to minus-10 in May. Other measures, such as practice performance and asset allocations, have also declined. Advisors have lost faith in the overall economy and government policies. Inflation remains a concern, despite reassurances from Fed Chair Jerome Powell. The uncertainty surrounding the election, inflation, and the Fed's actions has created a sense of unpredictability among advisors and clients. [72ca4dd5]