08.26.25
Jackson National Study Reveals Hidden Dangers for Risk-Averse Investors
by: Ayo Mseka
A Jackson National Life study reveals that risk-averse investors may face heightened market risks, particularly low long-term returns. Using the proprietary Market Risk Vulnerability Index, research found that high-index investors often overspend, underinvest in equities, hold excessive cash and lack diversification, leaving them exposed to inflation, longevity and healthcare risks. Only 14% of high-index investors met diversification benchmarks, while 57% spent over half their income on essentials. Diversification alone is insufficient against systemic market risk, which requires tools like annuities or hedging. Moderate risk-taking and professional guidance correlate with stronger financial resilience, yet many high-index investors do not seek professional advice, exacerbating vulnerability during retirement.
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