RADNOR, Pa.–(BUSINESS WIRE)–New data released today by Hartford
Funds uncovers Americans’ top financial concerns as they age, as
well as what worries them most about their aging parents.
Overwhelmingly, Americans worry about becoming a financial burden on
their family members as well as not having saved enough money. In
addition, survey respondents are most worried about their aging parents
maintaining a high quality of life. The survey also revealed specific
actions being taken to combat these concerns head-on.
“Finances are of course important, but disproportionate compared to
qualitative issues like caregiving and maintaining a social network of
family and friends,” said John Diehl, Senior Vice President, Hartford
Funds. “Advisors need to be thinking about these qualitative,
human-centric considerations when they approach discussions about aging
with their clients.”
Eliminating the Financial Burden on Children
Running out of money and becoming a financial burden to their children
are the top concerns associated with aging identified by survey
participants (40 percent). Younger respondents, those between 35 and 54
years old, are particularly worried about these issues; nearly half (45
percent) cited these concerns, compared with one-third of their older
counterparts. Additional disparities emerged on the topic when looking
at income. Specifically, those with income between $75,000 and $100,000
are more concerned about these issues than any other income group. In
fact, they are nearly twice as likely to worry about being a financial
burden on children or running out of money as respondents who make
$50,000 to $74,999 annually (50 percent and 29 percent, respectively).
In order to address concerns about being a burden on their children,
generally most Americans are taking proactive measures. Forty-two
percent are making strategic living arrangements, including physically
moving to accommodate their lifestyles (22 percent) or setting
themselves up to be accessible for caregiving by moving closer to
children or into an aging care home or community (20 percent). Women, in
particular, are making arrangements for caregiving, outnumbering men
nearly two-to-one (26 percent versus 14 percent). Twenty-two percent are
working with an advisor to get finances in order; men in particular are
more likely than women to engage a financial advisor (28 percent versus
Maximizing Quality of Life for Mom and Dad
Americans’ general top concern for their aging parents is tied to
quality of life issues. A quarter of respondents (26 percent) feel that
having a home their parents are physically able to maintain and easily
move around in is most important. Others are most concerned about their
parents maintaining a social network of friends and family (20 percent).
Interestingly, respondents ages 35 to 44 were much more likely than
their older counterparts to be concerned about their parents’ ability to
maintain a social network (28 percent versus 17 percent).
In general, Americans are also addressing the concerns they have about
their aging parents by either moving closer to their parents or moving
their parents closer to them (32 percent). In particular, 35 to
44-year-olds were more likely than older respondents to move closer to
their parents or have parents move closer to them (39 percent versus 20
“Moving to be closer to your parents or moving them closer to you is a
decision with enormous financial and quality of life implications, for
both parties. It’s important to proactively communicate with family
about these decisions and seek advice from a trusted source,” Diehl
The Communication Vacuum
These decisions appear to be occurring overwhelmingly without clear
family communication. The survey revealed that only a small number are
initiating conversations with their loved ones about their own and their
aging parents’ intentions as they age (an underwhelming 14 percent and
12 percent, respectively).
“These percentages should be significantly higher, considering the
implications these conversations can have on quality of life. Americans
should be starting a dialogue sooner rather than later,” Diehl
continued. “Avoiding or overlooking these conversations today can lead
to significant challenges down the road, including family conflicts and
logistical and financial complications.”
Additional information on how to navigate client discussions, anxieties
and other challenges and what the future of financial advice looks like
can be found on Hartford Funds’ website.
The subsequent paragraph describes the methodology used for the ORC
International Telephone CARAVAN® survey conducted February 11-14, 2016.
The study was conducted using two probability samples: randomly selected
landline telephone numbers and randomly selected mobile (cell) telephone
numbers. The combined sample consists of 1,006 adults (18 years old and
older) living in the continental United States. Of the 1,006 interviews,
506 were from the landline sample and 500 from the cell phone sample. Of
the 1,006 interviews, 775 were 35+. For the purposes of the data used in
this press release, 566 respondents have a child or children age 18 or
older and/or have a living parent age 65 or over. The margin of error
for the sample of 1,006 is +/- 3.09% at the 95% confidence level.
Smaller subgroups will have larger error margins.
About Hartford Funds
Founded in 1996, Hartford Funds is a leading provider of mutual funds
and 529 college savings plans. Using its human-centric investing
approach, Hartford Funds creates strategies and tools designed to
address the needs and wants of investors. Leveraging partnerships with
MIT AgeLab and leading practice management experts, Hartford Funds
delivers insight into the latest demographic trends and investor
behavior. Hartford Funds offers a diverse line-up of more than 45 mutual
funds, primarily sub-advised by Wellington Management, designed to
address the challenges investors face and includes equity, fixed-income,
multi-strategy, and alternative investments. The Company has mutual fund
assets under management of $74.4 billion as of December 31, 2015
(excluding assets used in certain annuity products). For more
information about the fund family, visit www.hartfordfunds.com.
All investments are subject to risk, including the possible loss of
The MIT AgeLab is not an affiliate or subsidiary of Hartford Funds.
Investors should carefully consider the investment objectives, risks,
charges, and expenses of Hartford Funds before investing. This and other
information can be found in the prospectus and summary prospectus, which
can be obtained by calling 888-843-7824 (retail) or 800-279-1541
(institutional). Investors should read them carefully before they invest.
Hartford Funds are underwritten and distributed by Hartford Funds
Distributors, LLC. Hartford Funds Management Company, LLC is the Funds’
investment manager. The Funds are sub-advised by Wellington Management
Company LLP (with the exception of certain fund of funds), a
SEC-registered investment adviser unaffiliated with Hartford Funds. “The
Hartford” is The Hartford Financial Services Group Inc. and its
subsidiaries. Hartford Funds Distributors, LLC is a subsidiary of The
Hartford Financial Services Group Inc.
Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of
1995. We caution investors that these forward-looking statements are not
guarantees of future performance, and actual results may differ
materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include those discussed in The Hartford’s
Quarterly Reports on Form 10-Q, our 2015 Annual Report on Form 10-K and
the other filings The Hartford makes with the Securities and Exchange
Commission. We assume no obligation to update this release, which speaks
as of the date issued.
From time to time, The Hartford may use its website to disseminate
material company information. Financial and other important information
regarding The Hartford is routinely accessible through and posted on our
website at http://ir.thehartford.com.
In addition, you may automatically receive email alerts and other
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For Hartford Funds
Robin Pertusi, 212-279-3115 x254