More retirees opt for CD’s and savings accounts

A recent poll conducted by Harris Interactive and MetLife reveals that more and more American adults are opting for certificates of deposits and savings accounts in preparation for their retirement. The poll also shows that an increase in the number of retirees with access to money market funds had been registered. Despite these findings, Harris Interactive and MetLife are quick to point out that the dissatisfaction rate of the retirees in relation to their monetary returns in their CDs and savings accounts has also increased.

Financial analysts say that with the poll’s mixed findings, the reality of the economic conditions is still very much observable. Allen Fringer says that the growing number of retirees opting for CDs and savings account should be positively taken as a responsible step to managing a better financial future.

On the other hand, Fringer says that the increase in the dissatisfaction rating of the retirees regarding their monetary returns should be considered as a recommendation for better service, bank rates, and offers. He opines that better education on the different types of certificates of deposit may be done for the retirees in order to mitigate their concerns due to low returns.

The Harris Interactive and MetLife poll affirms Fringer’s opinion with another one of its findings. The poll shows that out of the rich CD and savings account investors, 58% are still into liquid accounts due to the flexibility these accounts offer in cases when emergency situations require expensive spending.

Fringer is of the opinion that with such finding, the rise in the number of retirees opting for CDs may be interpreted as also as an increase in the number of Americans being able to choose which type of CD offers best suits their needs and circumstances. The poll adds that 62% of all CD investors have also spent an average of $2,000 in unexpected payments over the past year.

MetLife Executive vice president Robert Sollmann Jr. said that the retirees’ choice to go for CDs needed to be balanced with their ability to fulfill their needs when emergency situations may require them to spend more. At all points, he says that stock market is also a pressing concern for the investors. While many want the profitability the stock markets offer, very few actually have the technical skills to ensure such profit. Sollmann then believes that if low returns for the adults with CDs are the main concerns, the solution may lie in giving them low-cost options to justify the returns.