Even investors who avoided losses in downturn fear for their futures

Investors who lost a chunk of their retirement savings in the market downturn last year are obviously concerned about their futures — but so are investors who escaped the downturn unscathed, according to a report released yesterday by Financial Research Corp. Fifty-seven percent of investors who broke even or posted some gains said they felt their financial future was about as secure as it was prior to the downturn and, 39% said they felt somewhat or considerably less secure, according to the FRC study. “At the end of the day, it's tough to feel safe when you have banks failing around you, a market rebound that is being questioned and strategists expecting a significant market correction,” said Luis Fleites, vice president and director of retirement markets at FRC. “Even coming out of the downturn unscathed, you feel vulnerable to job loss and the fact that the [Federal Deposit Insurance Corp] is saying they need more money to insure your money.” With the future so uncertain, investors are working beyond the traditional retirement age of 65. The incidence of respondents who said they were “partially retired” was 20% among those ages 55 to 59; 26% among respondents ages 60 to 64; 29% in the 65-69 age group and 26% among those ages 70 to 74. “It's becoming more and more apparent that there isn't a traditional formula for retirement anymore,” Mr. Fleites said. “People are working longer and they may be working part time the whole time during retirement.” To be successful, advisers will have to help investors navigate the trends, Mr. Fleites said. “The qualitative piece will be critical. Clients need help with careers, job opportunities and health care. Advisers who get to know their clients, not just their assets and liabilities, but also their dreams and expectations, will do well,” Mr. Fleites said. The survey was conducted by Research Data Technology Inc. on behalf of FRC. The online survey of nearly 1,500 baby boomers and current retirees, ages 45-75, was conducted May 8-22. The respondents had more than $100,000 in investible assets.