Interest in products that provide lower returns but are guaranteed against loss is growing as market uncertainty continues, according to a report by Allianz Life Insurance Company of North America released Tuesday.

Eighty-one percent of the 797 respondents to the Allianz survey said they find a product with 4 percent return that is guaranteed not to lose value more attractive than one with 8 percent return that is vulnerable to market downturns. This compares to 78 percent who felt that way a year ago.

Fear of market uncertainty continues to drive popular opinion on retirement strategies, says Allianz. Sixty-two percent of respondents said their retirement plans are built on the assumption that the market will continue to be uncertain, which is a two-percentage-point drop from 2014. Only 26 percent of respondents said they are comfortable with the current market conditions and are ready to invest now, down slightly from 28 percent who said that last year.
 
Market uncertainty is the top concern for 37 percent of respondents and is keeping them from investing in the stock market. At the same time, 25 percent said that with a balanced approach the stock market can be a good place for long-term investments.

“Whether it’s a hangover from the market crash of 2008 or the various bumps in the road we’ve experienced along the way, the majority of Americans are simply not comfortable with any type of market volatility and are looking for ways to mitigate exposure while still building up their retirement nest eggs,” says Katie Libbe, vice president of Consumer Insights for Allianz Life. “Persistent desire for guarantees in this market environment tells a compelling story that, regardless of how the market actually performs, Americans want some type of protection against losses in their retirement savings strategy.”

If given extra cash, 36 percent of respondents said they would invest in a product that offers a balance of potential growth with some level of protection and 22 percent said they would put their money in a product that offers modest growth with no possibility of loss. Another 21 percent said they would put their extra money in a savings account and 13 percent said they would hold onto it.